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There will be a new SRI property auction on Sept 25, featuring a 1,593 sq ft strata office unit at Havelock II, located at 2 Havelock Road. This unit is currently owned by an individual and has a guide price of $2.63 million. The price per square foot (psf) is $1,651, based on the strata area, which also includes an accessory lot of 11 sq ft.
The property up for sale is a corner unit on the seventh floor. It has a regular layout, with meeting rooms, a washroom and a general work area already fitted. According to Mok Sze Sze, managing partner of SRI’s auction division, this corner unit receives ample natural light and also has its own air-conditioning system.
Records from the Urban Redevelopment Authority (URA) show that the current owner purchased the unit from the developer in 2014 for about $3.35 million, or $2,115 psf.
The unit is currently occupied by a business service provider and will be sold with the existing tenancy, which expires in May 2025. This means that the property’s current rental yield is about 3.3%, based on its guide price. However, Mok believes that the unit has the potential to achieve a gross rental yield of close to 6%, based on recent asking rents for office space at Havelock II.
Monthly rental rates for office space along Havelock Road have been steadily increasing since the beginning of the year. According to URA data, the median monthly rental rate for office space on Havelock Road was $5.88 psf in 1Q2024. It then rose to $7.00 psf in 2Q2024, and as of Sept 17, it has reached $7.64 psf. Based on the current median monthly rental rate of $7.64 psf, the unit can potentially generate a gross rental yield of around 5.5% per annum, based on its guide price.
The photos of the corner unit show the bare unit before the current tenants outfitted the property.
Being a commercial unit, there is no additional buyer’s stamp duty (ABSD) to be paid for this property, and foreigners are eligible to put in a bid. Mok reveals that there has been a lot of interest in the property from both investors and owner-occupiers.
There have been four office resale transactions recorded at Havelock II so far this year, with an average price of $1,794 psf. The most expensive 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. On the other hand, the unit with 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 on top of a three-storey retail podium. The office component contains 94 strata office units starting from 312 sq ft, and the retail podium has 151 retail and F&B units with sizes starting from 140 sq ft. The basement car park can accommodate about 101 vehicles.
Previously known as 2HR, Havelock II was purchased by Guthrie GTS in 2013 for $282.88 million. In 2016, it was rebranded to its current name after undergoing a $40 million upgrade. It is conveniently located within 400m of Clarke Quay MRT Station and Chinatown Interchange, providing connectivity to the North East and Downtown Lines. It is also close to institutional buildings such as the Ministry of Manpower and the Family Justice Courts, as well as the recently rebranded Park Regis by Prince Singapore hotel. Other nearby amenities include Hong Lim Market and Food Centre and People’s Park Centre.