A 1,593 sq ft strata office unit at Havelock II, located at 2 Havelock Road, will be on the block at SRI’s next property auction on Sept 25. (Photo: SRI)
A 1,593 sq ft strata office unit at Havelock II, located at 2 Havelock Road, will be on the block at SRI’s next property auction on Sept 25. An owner’s sale, the property 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 for sale is a corner unit on the seventh floor. It features a regular layout and is fitted with meeting rooms, a washroom and a general work area. According to Mok Sze Sze, managing partner of auctions at SRI, the corner unit receives ample natural light and has an independent air-conditioning system.
The property for sale is a corner unit on the seventh floor. (Photo: SRI)
URA caveats show that the unit for sale was purchased from the developer for about $3.35 million, or $2,115 psf, in September 2014.
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The property 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 shown a steady increase since the start of the year. URA data indicates 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 data as of Sept 17.
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.
Photos of the corner unit reflect the bare unit before the current tenants outfitted the property. (Photo: SRI)
As a commercial unit, the property is not subjected to additional buyer’s stamp duty (ABSD). Foreigners are eligible to put in a bid. The property has received sizeable interest from both investors and owner-occupiers, says Mok.
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.
Recent office transactions at Havelock II. (Source: EdgeProp Singapore, URA)
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.
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Havelock II was previously known as 2HR before it was purchased by Guthrie GTS in 2013 for $282.88 million. In 2016, it was rebranded to its current moniker following a $40 million upgrade.
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.