Auction of two separate strata retail units at People’s Park Complex for $800,000 and $1.8 mil

By Nur Hikmah Md Ali

/ EdgeProp Singapore |

November 16, 2023 3:54 PM SGT

Two retail units at People’s Park Complex will be put up for auction on Nov 16 (Photo: Samuel Isaac Chua/EdgeProp Singapore).

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SINGAPORE (EDGEPROP) - Two separate strata retail units on the second and fourth levels of the People’s Park Complex in District 1’s Chinatown will be put up for auction on Nov 16 by Knight Frank Singapore.

The indicative guide price for the 452 sq ft unit on the second level is $1.8 million ($3,982 psf), while the guide price for the fourth-level unit occupying 484 sq ft is $800,000 ($1,653 psf). This is the second time that both units have been put up for sale via Knight Frank Singapore’s auction.

Both units are currently tenanted. The second-floor unit is tenanted to a luxury retail store, which has renewed its lease term for two years from March next year, with a monthly rental rate of $5,000. The fourth-floor unit is tenanted to a wellness therapy business for $1,800 monthly until July 2025.

The owner of the second-storey retail unit bought the property for $1.45 million ($3,207 psf) in April last year, based on caveats lodged. The owner of the fourth-storey unit bought the property for $828,000 ($1,709 psf) in May last year and is the second owner of the retail space.

According to the auctioneer at Knight Frank, the units are not subject to goods and services tax (GST), additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD). Moreover, the building has the potential for en bloc sale.

People’s Park Complex is a 99-year leasehold, with a remaining 44 years on its lease. The mixed-use development is located at the junction of Eu Tong Sen Road and Park Crescent. Completed in 1970, it comprises a six-storey retail and office podium and a 25-storey apartment block. It has been zoned for commercial use under the URA’s 2019 Masterplan and has a gross plot ratio of 5.6.

Based on caveats lodged, the development has seen only three resale transactions so far this year. The last sale occurred in June when a 291 sq ft retail unit changed hands for $1.3 million, or $4,473 psf. The two other sales were in April and involved a 366 sq ft unit sold for $1.7 million ($4,645 psf) and a 452 sq ft unit for $2.08 million ($4,601 psf).

URA sales data from the last 12 months shows People’s Park Complex retail units typically selling for $947 psf on average. Unit rentals will range between $2.40 psf per month (pm) to $7.10 psf pm, or an average of $4.60 psf pm. This translates to a high rental yield of 5.8%.

The development’s rental yield is significantly higher than its retail neighbours’. Ninety-nine-year leasehold shopping mall Havelock2 on Havelock Road, located within a 500m radius of People’s Park Centre, has a rental yield of 4.6%. Another nearby mall, Chinatown Point on New Bridge Road, has a rental yield of 3.4%. The higher rental yield at People’s Park Complex speaks to the high footfall that the development enjoys, likely from residents in the neighbourhood and tourists.

People’s Park Complex is accessible via Chinatown MRT Station, located directly next to the development, and Outram Park MRT Station. Tricia Tan, director of auction and sales at Knight Frank Singapore, notes that it is a popular tourist destination with high footfall.

She adds that the recent government announcement to build 6,000 residential homes on Pearl’s Hill in Chinatown is expected to increase traffic in the area, bringing more business and higher investment yields to prospective buyers of the units.

Knight Frank’s Tan expects interest to come from investors — locals, foreigners and even corporate buyers. This is because buyers are not subjected to GST, ABSD or SSD.

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