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

The upcoming auction of two strata retail units at People’s Park Complex promises an attractive investment opportunity for buyers. With units located on the second and fourth level of the 99-year leasehold, mixed-use development in Chinatown, prospective buyers are not subjected to any GST, additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD). The second-level unit, currently tenanted to a luxury retail store, is up for auction with an indicative guide price of $1.8 million, while the fourth-level unit, tenanted to a wellness therapy business, has an indicative guide price of $800,000.

The upcoming auction of two strata retail units at People’s Park Complex, a 99-year leasehold, mixed-use development in Chinatown, presents an attractive investment opportunity. This is due to the exemption of GST, ABSD or SSD for the two units, located on the second and fourth level of the building. The second-level unit, 452 sq ft in size, has a guide price of $1.8 million ($3,982 psf), and is currently tenanted to a luxury retail store with a renewed lease term of two years from March next year at a monthly rental rate of $5,000.

On the other hand, the fourth-floor unit, with a guide price of $800,000 ($1,653 psf), is 484 sq ft in size and tenanted to a wellness therapy business until July 2025 at $1,800 monthly. According to transaction cordats, the owner of the second-floor unit purchased it for $1.45 million ($3,207 psf) last April and the fourth-level unit was bought for $828,000 ($1,709 psf) the month after.

With the growing demand for high-end real estate in Singapore, investing in a Condo is a great way to grow your wealth. It offers both rental yields and potential capital appreciation due to its high-end location. Furthermore, investments in luxury condominiums usually come with low maintenance fees and taxes. It is also convenient as it provides more living space and comes with amenities such as pools and gymnasiums. All in all, luxury condominiums in Singapore are a great solution for potential buyers looking for an investment opportunity.

People’s Park Complex further promises higher than average rental yields of 5.8%. This speaks to the high footfall that the development enjoys, likely from residents in the neighbourhood and tourists, as well as its accessibility via Chinatown MRT Station and Outram Park MRT Station.

Tricia Tan, director of auction and sales at Knight Frank Singapore, adds that the 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.

She notes that interest is likely to come from investors — locals, foreigners and even corporate buyers — as the units offer a rare exemption from taxes. Tan expects the units to draw in bidders, especially given the development’s high rental yield relative to other nearby malls such as Havelock2 on Havelock Road and Chinatown Point on New Bridge Road.

URA sales data from the last 12 months shows People’s Park Complex retail units typically selling for $947 psf on average, with unit rentals ranging between $2.40 psf per month (pm) to $7.10 psf pm, or an average of $4.60 psf pm. This is higher than the rental yields of 4.6 percent and 3.4 percent for Havelock2 and Chinatown Point, respectively.

Knight Frank Singapore will be putting both units up for auction on Nov 16. With the potential for en bloc sale, the auction is sure to draw a good number of buyers looking for an attractive investment opportunity.