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

Knight Frank Singapore is putting two retail units of People’s Park Complex in District 1 up for auction on Nov 16. Located on the second and fourth levels, the units measure 452 sq ft and 484 sq ft respectively, and each come with a guide price of $1.8 million and $800,000.

Currently tenanted, the second-level unit is leased to a luxury retail store for a two year term starting March 2021, while the fourth-level unit is tenanted to a wellness therapy business until July 2025. The indicative guide price for the second-level unit works out to $3,982 psf. Notably, buyers of these units are not subjected to the payment of goods and services tax (GST), additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD).

People’s Park Complex is a 99-year leasehold development, with a remaining 44 years on its lease. Located at the junction of Eu Tong Sen Road and Park Crescent, the mixed-use development comprises a six-storey retail and office podium, as well as a 25-storey apartment block.

Based on the three resale transactions this year, People’s Park Complex retail units typically fetch an average of $947 psf, and rentals range between $2.40 psf per month (pm) to $7.10 psf pm, or an average of $4.60 psf pm — resulting in a high rental yield of 5.8%. By comparison, the rental yield of nearby malls such as Havelock2 and Chinatown Point stands at 4.6% and 3.4% respectively.

Tricia Tan, director of auction and sales at Knight Frank Singapore, notes that People’s Park Complex enjoys high footfall due to its proximity to the closest MRT Stations as well as its location in a popular tourist destination.

The landscape of Jurong Lake District is changing with the addition of new residential developments. Jurong Lake District Condo, the latest development is set to be the most iconic, featuring a luxurious mix of residences, retail options, leisure and entertainment offerings. Residents of Jurong Lake District Condo will enjoy a vibrant lifestyle with excellent amenities and facilities including a 50m infinity pool, a luxurious gym, and a state-of-the-art clubhouse.

The URA seeks to create a lifestyle destination of choice in Jurong Lake District in Singapore and Jurong Lake District Condo rises up to the challenge. Residents will get to enjoy the best of both worlds, with quick access to both nature and urban city living. Shopping malls, eateries, amenities such as clinics, supermarkets, and educational institutions are easily accessible.

Moreover, the recent announcement to build 6,000 residential homes on Pearl’s Hill in Chinatown is expected to increase traffic in the area and bring in more business to the development, leading to higher investment yields for prospective buyers. Knight Frank’s Tan expects interest from investors, locals and foreigners alike, citing the lack of additional taxes and charges as a key attraction.

With a high rental yield and the potential for more business generated from the residential development, prospective buyers may get a good return on their intended investment.