People's Park Complex carpark on the market at S$42 million guide price
A multi-storey carpark at People’s Park Complex was put up on the market by public tender on Tuesday (Jun 22) with helpful information price of S$42 million - equal to S$57,000 for each car park lot.
The automobile park, which occupies levels three to six at the 31-storey mixed-use commercial and residential development in Chinatown, comprises 648 airport parking lots, 56 motorcycle lots and a restaurant unit at the very top level of the automobile park.
This spans a complete strata area around 182,340 sq ft, like the 2,809-sq-ft restaurant.
Marketing agent Brilliance Capital said the S$42 million price computes to about S$208 psf for the car park and S$1,673 psf for the restaurant unit.
On a per carpark lot basis, it means about S$57,000 per lot.
This is “priced attractively”, the agent said, discussing two other car park sales it concluded last year at Holland Road Shopping Centre and Parklane Shopping Centre. These car parks were sold at a lot more than S$360,000 and S$70,000 per lot, respectively.
People’s Park Complex is zoned commercial, this means it really is purchased by both local and foreign buyers without paying additional buyer's stamp duty or seller's stamp duty.
“As communal car parks are actually no more allowed separate strata titles, this has definitely become the most tightly held asset class that's well popular, but rarely available for purchase,” said Brilliance Capital's executive director Sammi Lim.
She said incoming buyers can benefit from the security of an instantaneous rental income from the restaurant unit.
This also presents a chance for investors, said Ms Lim, adding that there surely is "change useful potential through decanting portion of the car park”.
Brilliance Capital said the car park sector has “proved to be an appealing alternative to traditional property classes” such as residential and commercial units, and sometimes appears as “relatively low-risk investments”.
This has attracted investors who are seeking steady cashflow and a resilient asset class to purchase.
With authorities limiting the quantity of carpark lots in new developments, existing buildings with generous parking space hold a competitive advantage, it added.
"Because of the limited airport parking lots and significant high parking costs in core Raffles Place and Marina Bay CBD, People’s Park Complex car park has become among the beneficiaries where in fact the office crowd tap on a park and ride scheme to their offices," it said.
The tender will close on at 3pm on Jul 29.
Source: www.channelnewsasia.com
