These were the largest commercial property transactions in Singapore in Q3

Commercial investment transactions jumped 51.7% to S$2.45b.

In a report, Savills revealed that investment sales in Singapore’s commercial sector recorded a sharp quarterly increase of 51.7% QoQ, reaching S$2.45 billion in Q3/2024. 

“In the wake of the Republic’s largest money laundering scandal in August 2023, sales of strata title offices in Singapore initially declined. However, after hitting a low in the first quarter of 2024, sales activity rebounded rapidly in the second quarter and the momentum carried on into the third, with nine transactions (each priced at S$10 million and above) totaling S$286.3 million,” the report said.

Here’s more from Savills: 

Among these, the largest deal was the purchase of two levels of office units in Tong Building by luxury watch retailer The Hour Glass for S$68.5 million, or S$4,987 psf based on the strata area. Buyers have shown greater enthusiasm for freehold office projects, such as Solitaire On Cecil, 108 Robinson Road, and 6 Raffles Quay in Singapore’s CBD, as well as Tong Building on Orchard Road. The limited supply of these properties supports capital preservation and appreciation, enhancing their appeal to long-term investors. 

In Q3, the biggest transaction in the retail sector involved the sale of a 50% interest in ION Orchard. This was acquired by CapitaLand Integrated Commercial Trust (CICT) from its sponsor, CapitaLand Investment Limited (CLI). ION Orchard is a premier shopping destination located on Orchard Road, featuring nearly 300 international and local brands, ranging from luxury to necessity trades, across eight storeys of retail space. 

Based on the agreed property value, the 50% stake represented a price of S$1,848.5 million, or S$5,928 psf based on the net lettable area. Other major transactions included the sale of the single-storey Sceneca Square mall next to Tanah Merah MRT station to 8M Real Estate for S$64.0 million, and supermarket chain Sheng Siong’s acquisition of eight strata units at the freehold condominium Siglap V in Bedok together with an HDB retail unit located in Toa Payoh Central for S$50.2 million.

Investment sales in the shophouse segment grew by 28.1% QoQ to S$182.3 million in Q3/2024. Investment interest in this type of property remains strong, as the absence of Additional Buyer’s Stamp Duty for commercial shophouses makes this asset class appealing to foreign and corporate investors. Additionally, the sales of mortgaged shophouses owned by individuals connected to the S$3.0 billion money laundering case had reignited buying interest in recent months.