Office Floor At Suntec City Tower 2 Sold for S$41.14mil

Office Finder Team

October 5, 2022

Singapore

SINGAPORE – An entire office floor at the 31st floor of the 44-storey Suntec City Tower 2 has been purchased for S$41.14 million, reported Mingtiandi on Tuesday evening (4 October, SGT).

The news outlet cited a Monday LinkedIn post by Savills Singapore Investment Sales & Capital Markets. An industry source, who was not involved in the transaction, also disclosed to Mingtiandi that the buyer is an unnamed investor from Fujian, mainland China.

Given that the office floor measures 12,280 sq ft, it was sold for S$3,350 psf. This sets a new record psf price for an entire office floor at Suntec City, a mixed-use commercial property that comes with 2.3 million sq ft of office space, as well as a convention centre and a shopping mall.

The prior record-holder was the S$38.8 million acquisition of the entire level 30 in Suntec City Tower 2 by a different buyer from mainland China in June 2022, said the source.

Real estate experts believe the two record office transactions in Suntec City indicate that offshore investors are willing to pay a premium to secure a prime office space in Singapore’s downtown core area.

“The high floors at Suntec City are arguably the only strata floors in Singapore that offer unobstructed views of the city skyline, waterfront, Marina Bay Financial District, Kallang River and Singapore Sports Hub,” according to the LinkedIn post of Savills, which negotiated the office deal.

Previously, level 31 of Suntec City Tower 2 was occupied by Arcc Spaces, a local coworking space operator that has 16 other coworking centres in Singapore, Kuala Lumpur, Beijing, Shanghai, and Hong Kong.

Interestingly, after the S$38.8 million sale in June 2022, Knight Frank brokered the disposal of another office floor at the 5-tower Suntec City complex for S$36 million.

Notably, 59 percent of the office space at Suntec City’s 5 towers are owned by Suntec REIT, which also fully controls the entire Suntec City Mall in addition to holding a 66 percent stake in the commercial development’s convention centre.