Suntec Tower 1 Sells Strata Office Unit For S$10.52mil
SINGAPORE – A strata office unit on level 37 of Suntec Tower 1 in Suntec City has been divested earlier this month for S$10.52 million, which translates to S$3,417 psf based on its 3,079 sq ft strata area, reported The Edge on Thursday evening (19 August, SGT).
In terms of psf price, it is the most expensive since a similar-sized office unit on level 43 of the same building was sold for S$10.6 million (S$3,443 psf) about a year ago.
The latest deal represents a capital gain of 44 percent in just 2 years as the seller bought the strata office unit for S$7.3 million (S$2,3470 psf) in March 2019. At the same time, the vendor also acquired a neighbouring 2,196 sq ft office unit for S$5.2 million (S$2,370 psf), and this smaller office space is still up for grabs.
“One of the draws of this high floor unit is its unblocked view of Marina Bay Sands. High floor units of such sizes are rarely available on the market.” Another selling point is the cohesive Chinese business community in Suntec City, said Low Choon Sin, Managing Partner at SRI Capital Markets, who negotiated the latest transaction.
Moreover, the common areas of Suntec City’s office buildings were recently spruced up, making them similar to brand new Grade A office towers.
There’s also a limited amount of Grade A strata office space in Singapore’s central business district (CBD) available for sale, said Low. He revealed that apart from Samsung Hub, the other is Prudential Tower along Cecil Street, where the last sale occurred in November 2019, when a 1,625 sq ft strata office unit on level 24 changed hands for S$5.36 million (S$3,299 psf).
At Springleaf Tower along Anson Road, only strata office floors measuring around 10,000 sq ft are available for sale. The latest deal happened last November, when a 10,742 sq ft office floor was sold for S$23.5 million (S$2,188 psf).
Among the 5 office buildings at Suntec City, only towers 1, 2, & 3 have strata office units for sale. All of the towers have heights of 40 levels each, except for the 18-storey tower 5. These office components are connected to the 880,000 sq ft Suntec Mall and the Suntec Singapore Convention & Exhibition Centre, which offers 450,000 sq ft of event space.
“Suntec City has its own fan base. One of its main attractions for occupiers and investors is the unblocked views of Marina Bay from the high floors — something which the strata office towers in the CBD may not have,” Low added.
Built in phases from 1995 to 1997, Suntec City is one of Singapore’s biggest integrated projects. It was constructed by a consortium of Hong Kong business moguls, and it’s the most expensive property in Suntec REIT’s portfolio.