Strata Offices Prices Fall 201 H O H 1H2024 Knight Frank
In the first half of 2024, the average price of strata office spaces experienced a significant drop of 20.1% from $2,740 psf to $2,190 psf, according to a recent report released by Knight Frank. Despite this decline, the strata office market remained relatively stable with 154 transactions, just two fewer than the 156 transactions in the second half of 2023. However, this fall in the price per square foot resulted in a 15.6% decrease in total transaction value, dropping from $518 million to $437.3 million. The top five largest transactions by absolute price during this period consisted mainly of units sold at Vision Exchange and Suntec City. Vision Exchange claimed the top two spots with the sale of a 14,015 sq ft unit and a 10,775 sq ft unit for $33.3 million ($2,378 psf) and $25.7 million ($2,381 psf), respectively. These deals were both finalized in February. Suntec City followed closely behind with the sale of a 4,833 sq ft office unit on the 36th floor and a 4,779 sq ft unit on the 22nd floor, both in Tower Three. The unit on the 36th floor was sold for approximately $16 million ($3,311 psf), making it the third-highest strata office transaction in the first half of the year. This was followed by the unit on the 22nd floor, which sold for $15.3 million ($3,200 psf). In the fifth spot is the sale of a 2,325 sq ft unit on the ninth floor of Connexion, a mixed-use development along Farrer Park Station Road. The unit was sold for $11.6 million ($5,000 psf) in May, marking the highest recorded transaction for the development in terms of absolute price. According to Knight Frank, the Downtown Core Planning Area saw the most activity in the first half of 2024, with 47 transactions amounting to $190.1 million. The area was supported by the sale of units in International Plaza and Solitaire on Cecil, the only new freehold strata office building within the CBD. However, Knight Frank believes that additional strata office transactions may have occurred in 1H2024 but were not reported as no caveats were lodged. The decline in strata office prices during this time period was primarily due to a decrease in prices for both freehold and leasehold assets. However, data from Knight Frank reveals that the average price of freehold units experienced a slower rate of decline compared to leasehold units. The average price of freehold strata office spaces in 1H2024 dropped by 13.3% to $2,804 psf, from $3,235 psf in 2H2023. On the other hand, the average price of leasehold strata units registered a steeper drop of 17.1% to $2,031 psf in 1H2024, from $2,448 psf in 2H2023. While there was an increase in transaction volume for freehold office units, growing from 42 deals in 2H2023 to 49 deals in 1H2024, the total sales value fell significantly from $226.3 million to $115.4 million. In contrast, the total sales value of leasehold strata office units increased by 10.4% to $321.9 million in 1H2024, from $291.7 million in 2H2023, despite a slight decrease in the number of units sold. There were 105 leasehold strata office deals in 1H2024, a decline of 7.9% from the 114 deals in the previous half. Despite the overall lack of new inventory, Knight Frank notes that the strata office market has remained stable over the past 12 to 18 months. It predicts that transactions in the coming months will be driven by 108 Robinson Road and VisionCrest Orchard. Both freehold office buildings, located at Robinson Road and Penang Road, have been launched for sale since March and July, respectively. Knight Frank projects that the strata office market could achieve a total sales value of $1 billion for the whole of 2024.
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The Aurelle of Tampines EC, developed by Sim Lian Land and Sim Lian Development, is the newest executive condominium in Tampines Town. On October 9, the Housing and Development Board (HDB) announced that the executive condominium site at Tampines Street 62 (Parcel B) has been successfully awarded to the aforementioned developers. The winning bid for the site was $543.28 million, which translates to $721 per square foot per plot ratio (psf ppr). Situated at the heart of Tampines North, Aurelle of Tampines offers convenient and modern living for its residents.
