People's Park Complex carpark up for sale at S$42 million guide price
A multi-storey car park at People’s Park Complex was put up for sale by public tender on Tuesday (Jun 22) with helpful information price of S$42 million - equal to S$57,000 for each and every car park lot.
The car park, which occupies levels three to six at the 31-storey mixed-use commercial and residential development in Chinatown, comprises 648 car 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 works out 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 translates to about S$57,000 per lot.
That is “priced attractively”, the agent said, referring to two other carpark sales it concluded this past 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 might be purchased by both local and foreign buyers without paying additional buyer's stamp duty or seller's stamp duty.
“As communal car parks are now no more allowed separate strata titles, this has definitely become one of 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 enjoy 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 area of the car park”.
Brilliance Capital said the car park sector has “proved to be an appealing option to traditional property classes” such as for example residential and commercial units, and is seen as “relatively low-risk investments”.
It 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 carpark has become among the beneficiaries where in fact the office crowd tap on a park and ride scheme with their offices," it said.
The tender will close on at 3pm on Jul 29.
Source: www.channelnewsasia.com
