Singapore Strata Office Sales Down 5.4% In Q1
SINGAPORE – Data from Savills show that transactions involving strata office units in the city-state declined by 5.4 percent quarter-on-quarter to S$290 million during the 1st three months of the year compared to S$306 million in Q4 2022, reported The Edge on Monday afternoon (24 April, SGT).
Nonetheless, buying momentum in the strata office sector continues. In fact, three office floors at Solitaire on Cecil were recently sold for a total of S$162.8 million (S$4,300 psf). Comprising level 17 to 18 and the 20th floor, the transaction marked one of Singapore’s biggest strata office deals by quantum since January 2022.
Meanwhile, figures from Savills revealed that overall property investment sales here bounced back during the 1st quarter of the year, increasing 100.4 percent quarter-on-quarter to S$5.63 billion in Q1 2023 from S$2.81 billion in Q4 2022. The rebound was propelled by the conclusion of big-ticket deals, like Link REIT’s S$2.16 billion purchase of Jurong Point and Swing By @ Thomson Plaza.
In particular, investment sales in Singapore’s commercial real estate sector surged by 229.6 percent quarter-on-quarter to S$3.38 billion during the 1st three months of the year. This was primarily driven by retail deals. In fact, Link REIT’s S$2.16 billion acquisition and the S$652.5 million sale of a 50 percent interest in Nex mall accounted for around S$2.81 billion, or 83.3 percent of the overall deal value in the commercial property sector.
The positive figures for the 1st quarter could indicate that Singapore’s property market remains stable despite global economic issues, with ultra-high net worth individuals (UHNWIs) picking up the slack as most corporate buyers and institutional investors remained on the sidelines.
“UHNW private buyers are more resilient and active due to Singapore’s safe haven status and its status as the Switzerland of Asia,” noted Jeremy Lake, Managing Director of investment sales & capital markets at Savills.
“Strengthening headwinds generated in the global economic scene are unlikely to deter UHNWIs from investing in Singapore real estate, as they have different investment aspirations from those of institutional clients that are currently impacted by the financial markets,” added Savills Singapore Chief Executive Marcus Loo.