People's Park Centre up for second en bloc at $1.8b

It looks like en bloc sales are heating up again, as People’s Park Centre goes on the market for a guide price of $1.8 billion. 

This is its second attempt at a collective sale, with a 33.3 per cent increase in the asking price. Its first attempt in 2019 was lodged at $1.35 billion. 

Other big-ticket en blocs

International Plaza made big waves when it attempted its second en bloc in October 2021 at a reserve price of $2.7 billion. The outcome of the sale remains unknown, but if successful, it would be the biggest sale Singapore has ever seen.  

So far, Farrer Court holds the highest amount paid for a collective sale when it was sold to CapitaLand for $1.34 billion back in 2007.

People’s Park Centre

Located along history-rich District 1 of Chinatown, People’s Park Centre sits on a 95,467 sqft plot of land with a gross floor area (GFA) of 821,017 sqft and a gross plot ratio (GPR) of 8.6. 

At a $1.8 billion reserve price, this translates into $2,260 per sqft per plot ratio, including the differential premium and the premium to refresh its 99-year lease land tenure. 

Zoned commercial under the Urban Redevelopment Authority (URA) Master Plan 2019, it is classified as a mixed-use development consisting of 120 residential units, 324 retail shops and 256 offices. 

Commercial zoning also means property developers can build a mixed-use development without constraints from Additional Buyer’s Stamp Duty (ABSD). 

According to ERA, the collective sale has garnered 84per cent of the owner’s signatures by strata area and 80 per cent by share value. 

Iconic status 

When the Singapore government first launched the Government Land Sales (GLS) programme in 1967, three plots of 99-year leasehold land were put up for public tender. 

One of the plots became People’s Park Centre, making it an iconic feature in Singapore’s post-independent architectural landscape. 

The development was completed in 1973, making it more than five decades old. 

Golden Mile Complex, completed in the same year, holds a similar landmark reputation, leading URA to gazette it for conservation in 2021. 

The strata-titled building was recently sold in May this year to a consortium of Perennial Holdings, Sino Land and Far East Organization for $700 million. 

Price appreciation in People’s Park Centre

Over the last two decades, there’s been a price appreciation of 140.89 per cent, from $311 average price psf in 2002 to $749 in 2022, with a lull in sales between 2017 to 2020. 

Two buyers in 2021 and 2022 purchased units for $1.35 million and $1.75 million, respectively. 

If the collective sale goes through, they would have to pay Seller’s Stamp Duty (SSD) of 12 per cent since the properties were bought within three years. 

That shakes out to an SSD of $162,000 and $210,000 for each buyer. Hopefully, the increase in the guide price can help to cushion that blow. 

As of July 7, 2022, there are seven listings for sale priced between $917 to $978 psf.

Hot redevelopment opportunity

People’s Park Centre benefits from excellent connectivity, with The Central Expressway (CTE) being just a five-minute drive away via Eu Tong Sen Street. The development also sits right next to central MRT stations of Chinatown MRT (a three-minute walk) and Clarke Quay MRT (a six-minute walk). 

Residents can head to Pearl’s Hill City Park to escape the hustle and bustle of living in the city centre. Built around Pearl’s Hill Reservoir, the park is a small green area tucked away on a hilltop just a 6-minute stroll away. 

Fun fact: Named after Captain James Pearl, commander of the ship which brought Raffles to Singapore in 1819, Pearl’s Hill Reservoir was built in 1904 and is one of the oldest surviving reservoirs constructed by the British. 

Amenities

Amenities aren’t an issue: Chinatown Point is a stone’s throw away, sitting on top of the Chinatown MRT link. It has an NTUC FairPrice and a 10,764 sqft library that focuses heavily on Chinese culture. 

 There are a small handful of schools in the area: Outram Secondary School, River Valley School, Cantonment Primary School, School of The Arts and Singapore Management University. 

Entertainment and nightlife

Chinatown definitely has no shortage of things to do and places to eat. Clarke Quay is a 13-minute walk away, with many bars and restaurants dotting the alleys. 

People’s Park Centre residents can save on taxi surcharge walking back home after a fun night out.

When you combine all the above factors – unbeatable location, rich culture and a plethora of amenities – it’s a given that the site will be one to watch for further developments.  

We predict that it will follow the footsteps of Golden Mile and be purchased by a consortium of developers looking to redevelop a prized site in the city centre. 

This article was first published in 99.co.