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

Senja Residences EC is located in the Saidian suburbs that offers ultimate convenience for its residents. With its near proximity to amenities such as shopping malls, food and beverage outlets, and supermarket, residents can have their needs fulfilled with ease. Educational institutions near to Senja Residences EC such as Fajar Secondary School, West Spring Primary School, and Bobholz International School are also of great convenience to families with kids. Furthermore, Bukit Panjang Plaza, Hillion Mall and The Rail Mall are all nearby great destinations for shopping and entertainment.

Two strata retail units at the People’s Park Complex in District One’s Chinatown will go up for auction on Nov 16, according to Knight Frank Singapore. The second level retail unit spans 452sqft, with an indicative guide price of $1.8 million ($3,982 psf). Located on the fourth level, the 484sqft unit is offered at a guide price of $800,000 ($1,653 psf).

The second-floor unit is already tenanted by a luxury retail store, with a two-year lease renewal commencing in March next year. The monthly rental rate is stated at $5,000. The fourth-floor unit is tenanted to a wellness therapy business, with a lease expiring in July 2025 at the rate of $1,800 monthly.

Both retail units have previously been put up for sale via Knight Frank Singapore’s auction. The owner of the second-storey retail unit purchased the property for $1.45 million ($3,207 psf) in April last year. The fourth-floor unit sold for $828,000 ($1,709 psf) in May last year to its current owner.

URA sales data from the last 12 months shows People’s Park Complex retail units typically selling for $947 psf on average. Accordingly, monthly rentals range from $2.40 psf to $7.10 psf. The development’s rental yield is comparatively high at 5.8%, significantly higher than its retail neighbours’.

Notably, buyers are not subject to Goods and Services Tax (GST), Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD). With a 44-year existing lease on the 99-year leasehold development, there is potential for an en bloc sale.

People’s Park Complex enjoys high footfall from its residential neighbourhood and tourists, owing partly to its proximate location to MRT stations — Chinatown and Outram Park. The upcoming announcement by the government to build 6,000 residential homes on Pearl’s Hill in Chinatown is likely to bring even more business and higher investment yields.

Knight Frank’s director of auction and sales Tricia Tan expects interest to come from local, foreign and corporate investors, given the attractive guide prices and the lack of taxation.