People's Park Complex car park up for sale at S$42 million guide price
SINGAPORE: A multi-storey car park at People’s Park Complex was put up for sale by public tender on Tuesday (Jun 22) with a guide price of S$42 million – equivalent to S$57,000 for each car park lot.
The car park, which takes up 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 top level of the car park.
This spans a total strata area of about 182,340 sq ft, including 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 car park lot basis, it translates to about S$57,000 per lot.
This is “priced attractively”, the agent said, referring to two other car park sales it concluded last year at Holland Road Shopping Centre and Parklane Shopping Centre. These car parks were sold at more than S$360,000 and S$70,000 per lot, respectively.
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People’s Park Complex is zoned commercial, which means it can 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 longer allowed separate strata titles, this has definitely become one of the most tightly held asset class that is well sought after, but rarely available for sale,” said Brilliance Capital's executive director Sammi Lim.
She said incoming buyers can enjoy the security of an immediate rental income from the restaurant unit.
This also presents an opportunity for investors, said Ms Lim, adding that there is "change of use potential through decanting part of the car park”.
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Brilliance Capital said the car park sector has “proved to be an appealing alternative to traditional real estate classes” such as residential and commercial units, and is seen as “relatively low-risk investments”.
This has attracted investors who are looking for steady cash flow and a resilient asset class to invest in.
With authorities limiting the number of car park lots in new developments, existing buildings with generous parking space hold a competitive advantage, it added.
"Due to the limited car parking lots and significant high parking costs in core Raffles Place and Marina Bay CBD, People’s Park Complex car park has become one of the beneficiaries where 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.
