Office Unit Havelock Ii Market 26 Mil
A 1,593 square foot strata office unit at Havelock II, located at 2 Havelock Road, will be up for auction at SRI’s next property auction on September 25. The property, which is being offered for sale by its owner, has a guide price of $2.63 million, which translates to $1,651 per square foot based on the strata area. The property also includes an accessory lot spanning 11 square feet.
The property for sale is a corner unit on the seventh floor and features a regular layout 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 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 per square foot in the first quarter of 2024 before increasing to $7.00 per square foot in the second quarter of 2024. It subsequently rose to $7.64 per square foot in the third quarter of 2024, based on data as of September 17.
Based on the current median monthly rental rate of $7.64 per square foot, the unit up for auction could generate a gross rental yield of around 5.5% per annum based on its guide price.
As a commercial unit, the property is not subject to additional buyer’s stamp duty (ABSD). Foreigners are eligible to put in a bid. The property has received significant interest from both investors and owner-occupiers, according to Mok.
There have been four office resale transactions recorded at Havelock II so far this year at an average price of $1,794 per square foot. The priciest unit, in terms of psf price, was a 721 square foot, fourth-floor unit that was sold on August 29 for $1.5 million or $2,080 per square foot. Conversely, the unit that fetched the lowest psf price this year was a 334 square foot, fourth-floor unit that was sold on July 26 for about $525,000 or $1,573 per square foot.
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 square feet. The retail podium houses 151 retail and F&B units with sizes starting from 140 square feet. The basement carpark accommodates about 101 lots.
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 400 meters 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, 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.
The URA Master Plan places a strong emphasis on fostering vibrant and inclusive communities. As exemplified by Elta Condo, this vision is translated into a dynamic and socially engaging living environment. As a project by Elta CSC Land (http://www.the-elta.com.sg/), Elta Condo strives to create a community that is both lively and welcoming to all.