A strata office unit at Havelock II, with a strata area of 1,593 square feet, will soon be up for auction by SRI on September 25. This unit, located at 2 Havelock Road, is an owner’s sale and has been listed with a guide price of $2.63 million. This translates to a price of $1,651 per square foot (psf), which includes an accessory lot of 11 sq ft.
Situated on the seventh floor, this corner unit boasts a regular layout and comes with meeting rooms, a washroom, and a general work area. According to Mok Sze Sze, managing partner of auctions at SRI, the unit receives an ample amount of natural light and is also equipped with an independent air-conditioning system.
The unit was purchased from the developer in September 2014 for about $3.35 million, which works out to be around $2,115 psf. This is according to URA caveats.
Currently tenanted to a business service provider, this unit is being sold with an existing tenancy that is set to expire in May 2025. Based on the guide price, the current rental yield of this property is around 3.3%, as per Mok. However, she is of the opinion that the unit has the potential to generate a gross rental yield of close to 6%, based on the recent asking rents for office space at Havelock II.
According to Mok, the monthly rental rates for office space along Havelock Road have been showing a steady increase since the beginning of the year. Citing URA data, she pointed to the median monthly rental rate for office space on Havelock Road being $5.88 psf in the first quarter, which then increased to $7.00 psf in the second quarter and to $7.64 psf in the third quarter, based on data as of September 17.
Based on the current median monthly rental rate of $7.64 psf, this unit up for auction can generate a gross rental yield of around 5.5% per annum, based on the guide price.
Images of the corner unit feature a bare unit before the current tenants fitted the property (Photo: SRI)
Being a commercial unit, this property is not subjected to additional buyer’s stamp duty (ABSD). Foreigners can also bid for this property. Mok says that the property has garnered a significant interest from both investors and owner-occupiers alike.
So far, there have been four office resale transactions recorded at Havelock II this year at an average price of $1,794 psf. The most expensive unit, in terms of psf-price, was a 721 sq ft unit on the fourth floor which was sold for $1.5 million or $2,080 psf on August 29.
On the other hand, the unit which sold for the lowest psf-price this year was a 334 sq ft unit on the fourth floor that fetched around $525,000 or $1,573 psf on July 26.
Havelock II is a seven-storey mixed development that has a 99-year lease from 1983. It comprises of a four-storey office tower and a three-storey retail podium. The office component boasts of 94 strata office units, with the smallest unit measuring 312 sq ft. Meanwhile, the retail podium houses 151 retail and F&B units with sizes beginning from 140 sq ft. There is also a basement carpark that has around 101 lots.
This property was formerly known as 2HR before being acquired by Guthrie GTS in 2013 for $282.88 million. In 2016, it was renamed to its current moniker following a $40 million upgrade.
The building is situated within 400m of Clarke Quay MRT Station and Chinatown Interchange, providing easy access 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, 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.