Singapore strata office transactions down 15.7% to S$365m in H1

There were fewer strata offices available for sale. 

In H1 2022, a total of 145 strata office units exchanged hands in Singapore, amounting to S$365.1 million. According to Knight Frank, this was a half-yearly decline of 15.7% from the 172 units sold in H2 2021 when the total transaction value stood at S$461.9 million. 

On a year-on-year basis, the amount transacted in H1 2022 was slightly more than half of the S$703.5 million registered from the sale of 169 units in H1 2021, a stark contrast from the same period a year ago. 

Here’s more from Knight Frank:

The slowdown in sales activity could be attributed to the shrinking saleable stock of strata offices. With the recent successful collective sale of a few strata commercial buildings, existing owners of other strata buildings may be holding on to their units in hopes of also embarking on the enbloc route. 

As such, investors with a view towards capital gains might also tap into the market for the enbloc potential of strata offices. The Downtown Core Planning Area recorded the largest volume of sales in H1 2022, with 45 units sold. Most of these transactions were strata offices in older buildings that possess enbloc potential or have been launched for a collective sale, with High Street Centre and Shenton House recording a combined total of nine transactions in H1, signalling the ongoing interest among investors for this asset class. 

Within the Central Region, other modern, quality strata offices like Suntec City continued to record healthy levels of sales. Given its good location and that these well-maintained developments are strata-titled, the building has been one of the consistent few that have received regular demand for its units. For example, a strata office unit occupying an entire floor at Suntec City Tower 2 was reportedly sold for S$38.8 million (S$3,300 psf) in June to a Singapore permanent resident of Chinese descent who liked the unblocked view of Marina Bay.

Other key deals in H1 2022 included Paya Lebar Square where nine units exchanged hands. Similar to Suntec City, its close proximity to various amenities such as retail facilities and an MRT station played a key role in attracting buyers. In addition to its good location, strata office units within this building are also priced more affordably, when compared to other units, especially the ones in the Central Business District (CBD).