Office Unit Havelock Ii Market 26 Mil
A strata office unit with a size of 1,593 sq ft is up for sale at the upcoming property auction hosted by SRI on Sept 25. The unit is located at Havelock II, situated at 2 Havelock Road. The current owner is selling the property and the guide price is at $2.63 million, which translates to $1,651 psf based on the strata area. The strata area includes an accessory lot of 11 sq ft.
This corner unit is located on the seventh floor and features a regular layout. It is fitted with meeting rooms, a washroom, and a general work area. Mok Sze Sze, the managing partner of auctions at SRI, states that the corner unit receives plenty of natural light and has its own air-conditioning system.
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The concept behind Parktown Residence is to seamlessly combine contemporary homes with top-notch lifestyle facilities, ultimately solidifying its reputation as a trailblazer in urban living. Situated in the bustling Tampines North, this residential development is set to redefine standards and curate a dynamic community within the vibrant heart of the city. With its prime location on Tampines Avenue 11, Parktown Residence effortlessly integrates modernity and convenience for its future residents.
The unit for sale was purchased from the developer in September 2014 for about $3.35 million, which is equivalent to $2,115 psf according to the caveats from URA.
The property is currently tenanted to a business service provider and will be sold with the existing tenancy that expires in May 2025. As per Mok, the current rental yield is about 3.3% based on the guide price. However, she believes that the unit can potentially generate a gross rental yield of close to 6%, based on the recent asking rents for office space at Havelock II.
The monthly rental rates for office space in Havelock Road have been steadily increasing since the beginning of the year. In 1Q2024, the median monthly rental rate for office space in Havelock Road was $5.88 psf, whereas in 2Q2024, it increased to $7.00 psf. By the end of 3Q2024, it had spiked to $7.64 psf based on the data as of Sept 17.
If we take the current median monthly rental rate of $7.64 psf, the unit up for auction could potentially generate a gross rental yield of around 5.5% per annum based on its guide price.
Mok noted that there has been significant interest from both investors and owner-occupiers due to the property’s potential. As a commercial unit, it is free from the additional buyer’s stamp duty (ABSD), and foreigners are eligible to bid as well.
So far, there have been four office resale transactions at Havelock II this year, with an average price of $1,794 psf. The most expensive unit in terms of psf-price is a 721 sq ft unit on the fourth floor that was sold for $1.5 million on Aug 29. This translates to $2,080 psf. On the other hand, the unit with the lowest psf-price is a 334 sq ft unit also on the fourth floor, which was sold on July 26 for approximately $525,000 or $1,573 psf.
Havelock II is a seven-storey mixed development that was built in 1983 and has a 99-year lease. It consists of a four-storey office tower on top of a three-storey retail podium. The office component comprises of 94 strata office units, starting from 312 sq ft. The retail podium houses 151 retail and F&B units with sizes beginning from 140 sq ft. The basement carpark can accommodate about 101 cars.
In 2013, the building was bought by Guthrie GTS for $282.88 million and was given the name 2HR. In 2016, it was rebranded to its current name after undergoing a $40 million upgrade.
Clarke Quay MRT Station and Chinatown Interchange are located within 400m from Havelock II. This provides connectivity to the North East and Downtown Lines. The building is also close to institutional buildings such as the Ministry of Manpower and Family Justice Courts, as well as the newly rebranded Park Regis by Prince Singapore hotel. Other nearby amenities include Hong Lim Market and Food Centre and People’s Park Centre.