Suntec City Strata Office Floor Acquired For S$11m
SINGAPORE – Sophia Lim and Jeremy Lake from Savills Investment Sales & Capital Markets team have brokered the sale of a full office floor at Suntec City Tower 1 for S$11.5 million, according to a press release published by the real estate consultancy on Tuesday afternoon (July 25, SGT).
This is the 4th office strata transaction at Suntec City that was brokered by the duo since 2021, with 8 entire floors divested collectively valued at S$288 million.
By the deal value, the most expensive was the sale of 6 office levels in Tower 1 and 2 in June 2021 for a total of S$197 million. In August 2022, the team brokered the sale of an office floor at Tower 2 for S$41.148 million, or S$3,350 psf – a record psf price at that time.
“Suntec City offices have always been much sought-after by investors, end-users and family offices, and in particular those from Hong Kong, China and India,” commented Sophia Lim, Director of the Investment Sales & Capital Markets team at Savills.
“We have observed strong renewed interest from these groups of buyers following the successful completion of the asset enhancement works for Suntec City last year. The works included the upgrading of entrance lobby, reception, concierge area, lift lobbies and restrooms, further strengthening the value proposition of the office floors.”
However, data from Savills showed that overall property investment sales in Singapore plunged 50.7 percent quarter-on-quarter to S$3.29 billion in Q2 2023, with commercial real estate investment sales falling sharply by 77.9 percent to S$940.7 million.
Nonetheless, the sale of a full office floor at Suntec City Tower 1 could signal a shift in the trend.
“The Singapore investment market has been in the doldrums for more than a year with sales volumes down significantly. Institutional buyers have been sitting on the sidelines watching the dramatic increase in interest rates and waiting for signs of a peak,” noted Jeremy Lake, Managing Director at Investment Sales & Capital Markets team at Savills.
“While institutional buyers have been on the sidelines, private high-net worth buyers have been much more active with shop houses and strata offices being flavour of the month. These buyers are less sensitive to higher interest rates and are playing the long game knowing Singapore property prices will rise over time despite some near-term headwinds,” he added.
