Chief Editor August 24 2022

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No Property Developers bid for People’s Park Centre collective sale

Singapore landmark property, People’s Park Centre, failed to attract any bid for its collective sale.

People’s Park Centre was completed in 1976 and it is located in Chinatown, a familiar place for tourists and Singaporean Chinese. There are 324 shops, 256 offices, 120 residential apartments and a carpark.

The exceptionally high S$1.8 billion reserve price was too much to ask for property developers nowadays. 

The reserve price works out to a land rate of S$2,620 per square foot per plot ratio (psf ppr).

Considering that the reserve price was only S$1.35 billion in 2019. It is difficult to justify the S$450 million price appreciation after 3 years for a 99-year leasehold mixed-use commercial-and-residential development. 

The risk to reward ratio simply did not appeal to savvy property developers whom are price sensitive. 

Collective sale with reserve price of more than S$1 billion last took place in 2007. It is challenging given its high quantum.

ERA Realty Network is the marketing agent for People's Park Centre.

Sunny Wong, who heads the en-bloc of People's Park Centre said there's demand for mixed-use developments following the sale of Golden Mile Complex, Tanglin Shopping Centre, Peace Centre and Peace Mansion.

If the en-bloc materializes, the shop owners could receive sale proceeds of between S$213,000 and S$22.7 million, while those with strata offices could receive between S$536,000 and S$12.5 million.

Residential owners are hoping to retire with the windfall between S$2.39 million and S$3.42 million, with penthouses drawing between S$3.42 million and S$5.33 million.