In the first half of 2021, strata office sales increased by 106.6%, to $691.5 million.

Singapore’s strata office market saw transaction values soar 106.6% to $691.5 million in the first half of 2021, surpassing the half-yearly transaction values, which have stayed below $600 million since H1 2015, reported Singapore Business Review (SBR) citing Knight Frank.

This comes as a total of 162 strata office units were sold in H1 2021, more than double the 79 units shifted over the same period in 2020.

The bulk of the sales were posted in the second quarter of 2021, with a total value of $454 million for 81 strata offices.

In terms of location, 30% of units sold were found within the Central Business District (CBD), particularly in Central in Eu Tong Sen Street, which registered 12 transactions with a total value of $67.7 million.

A strata office unit in Samsung Hub emerged as the most expensive unit as it was sold for $53.1 million or $4,050 per sq ft (psf).

“Besides purchasing for owner-occupation, the en bloc potential of some strata office buildings ripe for redevelopment might also have spurred opportunistic buyers,” noted Knight Frank as quoted by SBR.

“As quality strata-office space in central locations remains in short supply, sizable units that meet the requirements of these businesses will be sought after. Boosted by transactions in these locations, the total sales volume is thus expected to cross 200 transactions for the whole of 2021.”

Source: CommercialGuru, 10 August 2021