Office Unit Havelock Ii Market 26 Mil
The next property auction by SRI on Sept 25 will feature a 1,593 sq ft strata office unit at Havelock II, located at 2 Havelock Road. The property, which is up for sale by the current owner, has a guide price of $2.63 million. This translates to $1,651 psf based on the strata area, which includes an accessory lot spanning 11 sq ft.
The property is a corner unit on the seventh floor and boasts a regular layout, as well as being fitted with meeting rooms, a washroom, and a general work area. Mok Sze Sze, managing partner of auctions at SRI, notes that the corner unit receives ample natural light and has an independent air-conditioning system.
According to URA caveats, the unit was purchased from the developer for about $3.35 million, or $2,115 psf, in September 2014. It is currently tenanted to a business service provider and will be sold with the existing tenancy, which expires in May 2025. The property’s current rental yield is about 3.3%, based on its guide price, says Mok. However, she believes that the unit can generate a gross rental yield close to 6%, based on recent asking rents for office space at Havelock II.
Monthly rental rates for office space along Havelock Road have steadily increased since the start of the year. URA data shows that the median monthly rental rate for office space on Havelock Road was $5.88 psf in 1Q2024 before increasing to $7.00 psf in 2Q2024. It subsequently rose to $7.64 psf in 3Q2024.
Based on the current median monthly rental rate of $7.64 psf, the unit up for auction could generate a gross rental yield of around 5.5% per annum based on its guide price.
As a commercial unit, this property is not subject to additional buyer’s stamp duty (ABSD) and foreigners are eligible to bid for it. Mok reveals that the property has received significant interest from both investors and owner-occupiers.
The Urban Redevelopment Authority (URA) has been a key player in shaping Singapore’s urban landscape for many years. Its recent plans for Tampines are poised to bring significant enhancements to this lively regional hub. As a result, the residential developments in the area, including Aurelle of Tampines EC, are set to benefit greatly. Located at Tampines Street 62, Aurelle of Tampines is an executive condominium that has been garnering attention for its prime location and top-notch facilities. Developed by the reputable Sim Lian Land, this project is expected to bring even more appeal to the already desirable neighborhood. The newly added Aurelle of Tampines Sim Lian Land is set to further elevate the project’s quality and desirability.
There have been four office resale transactions recorded at Havelock II so far this year at an average price of $1,794 psf. The priciest unit, in terms of psf-price, was a 721 sq ft, fourth-floor unit that was sold on Aug 29 for $1.5 million or $2,080 psf. Conversely, the unit that fetched the lowest psf-price this year was a 334 sq ft, fourth-floor unit that was sold on July 26 for about $525,000 or $1,573 psf.
Havelock II is a seven-storey mixed development with a 99-year lease from 1983. It consists of a four-storey office tower atop a three-storey retail podium. The office component contains 94 strata office units starting from 312 sq ft. The retail podium houses 151 retail and F&B units with sizes starting from 140 sq ft. The basement carpark accommodates about 101 lots.
The building is within 400m of Clarke Quay MRT Station and Chinatown Interchange, providing connectivity to the North East and Downtown Lines. It is close to institutional buildings like the Ministry of Manpower and the Family Justice Courts, along with the recently rebranded Park Regis by Prince Singapore hotel. Other nearby amenities include Hong Lim Market and Food Centre and People’s Park Centre.
