Office Unit Havelock Ii Market 26 Mil
A 1,593 sq ft strata office unit at Havelock II, located at 2 Havelock Road, will be up for auction on Sept 25 by SRI. The owner has put the property on sale with a guide price of $2.63 million. This translates to a price of $1,651 per sq ft based on the strata area, which also includes an accessory lot of 11 sq ft.
Situated on the seventh floor, this corner unit boasts of a regular layout and is equipped with various meeting rooms, a washroom and a general work area. Mok Sze Sze, the managing partner of auctions at SRI, has mentioned that this particular unit receives a substantial amount of natural light and has an individual air-conditioning system.
The unit was bought from the developer in September 2014 for approximately $3.35 million, which works out to be $2,115 per sq ft, according to URA caveats.
Currently, the unit is being occupied by a business service provider and will be sold with the existing tenancy, which is set to expire in May 2025. According to Mok, the property’s current rental yield is around 3.3% based on its guide price, but she believes that it can potentially generate a gross rental yield of approximately 6%, based on the recent asking rents for office space at Havelock II.
The monthly rental rates for office spaces along Havelock Road have been steadily increasing since the beginning of this year. URA data shows that the median monthly rental rate for office spaces on Havelock Road was $5.88 per sq ft in 1Q2024. It then rose to $7.00 per sq ft in 2Q2024 before reaching $7.64 per sq ft in 3Q2024, as of Sept 17.
Based on the current median monthly rental rate of $7.64 per sq ft, the unit up for auction could potentially generate an annual gross rental yield of approximately 5.5% based on its guide price.
As a commercial unit, the property is not subject to additional buyer’s stamp duty (ABSD). Foreigners are also eligible to bid for this property, making it highly sought-after by both investors and owner-occupiers, according to Mok.
This year, there have been four office resale transactions at Havelock II, with an average price of $1,794 per sq ft. The most expensive unit, in terms of price per sq ft, was a 721 sq ft fourth-floor unit that was sold on Aug 29 for $1.5 million or $2,080 per sq ft. On the other hand, the unit with the lowest price per sq ft was a 334 sq ft fourth-floor unit that was sold on July 26 for around $525,000 or $1,573 per sq ft.
Havelock II is a seven-storey mixed development with a 99-year lease from 1983. It comprises of a four-storey office tower and a three-storey retail podium. The office component consists of 94 strata office units ranging from 312 sq ft while the retail podium features 151 retail and F&B units starting from 140 sq ft. The basement carpark has about 101 lots.
Rebranded from 2HR, Havelock II was purchased by Guthrie GTS in 2013 for $282.88 million. In 2016, it underwent a rebranding and was known by its current name after a $40 million upgrade.
Rewritten: The Woodlands area is constantly evolving and improving thanks to the URA’s Master Plan, and the surrounding area of Norwood Grand is no exception. With plans for increased connectivity, more green spaces, and additional public amenities, the ongoing development in this area is expected to draw in more visitors to the nearby shopping centers. As a result, there is a possibility for expansion and the introduction of a wider range of retail and lifestyle choices. Norwood Grand CDL will also play a significant role in the continued growth and enhancement of this area.
The building 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 in close proximity to government 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.