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

Up for auction near Dhoby Ghaut MRT: A Fletcher Rd home in private estate With a rental yield of 5.8%, two strata retail units at People’s Park Complex in District 1’s Chinatown will be put up for auction on Nov 16. The mixed-use development has seen only three resale transactions so far this year, with units typically selling for $947psf on average.

The second project is the construction of a Champions Way Condo. This mixed-use development will feature eight towers of various heights ranging from 14 to 35 stories. The condo will be built on a 6.25-acre site and will include various amenities such as a swimming pool, gym, clubhouse, and retail space. It is anticipated that the condo will be completed by 2021 and will serve as a new landmark for the area.

Knight Frank Singapore is offering two separate strata retail units on the second and fourth levels of the People’s Park Complex located in District 1’s Chinatown up for auction on Nov 16. Indicative guide prices for the two units are $1.8 million ($3,982 psf) for the 452 sq ft unit on the second level, and $800,000 ($1,653 psf) for the 484 sq ft unit on the fourth level.

Both units are currently tenanted. The second-level unit is rented to a luxury retail store for $5,000 a month and is valid until March 2021. The fourth-level unit is tenanted to a wellness therapy business until July 2025 for $1,800 a month.

Interestingly, buyers of these units will not be subjected to Goods and Services Tax (GST), Additional Buyer’s Stamp Duty (ABSD), or Seller’s Stamp Duty (SSD). This is the second time the two units have been put up for sale via Knight Frank Singapore’s auction.

The People’s Park Complex has a remaining 44 years on its 99-year leasehold, with a gross plot ratio of 5.6. It is located at the junction of Eu Tong Sen Road and Park Crescent, which is next to the Chinatown MRT Station and close to Outram Park MRT Station.

The development enjoys high footfall, thanks in part to its proximity to residential areas and help draw in tourists. This is evidenced by the higher rental yield of 5.8% compared to nearby shopping malls where rental yields are at 4.6% and 3.4%.

The recent announcement to build 6,000 residential homes on Pearl’s Hill in Chinatown is expected to further increase traffic in the area and bring in more business opportunities. Knight Frank’s director of auction and sales, Tricia Tan, expects interest to come from local, foreign, and even corporate buyers.

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