Strata market set for growth as rates ease

Old trading firms and private families are the main sellers of units in big buildings.

The strata commercial market is expected to see more activity in the coming months, lifted by lower interest rates that have boosted investor returns.

“We see more strata-titled properties being put on the market as owners who have held these assets for some time look to extract profit, given the stable capital growth over the years,” Daphne Poh, capital markets director at Cushman & Wakefield Property Services (Singapore) Pte. Ltd., told Singapore Business Review said in an emailed reply to questions.

Older trading firms and private families are emerging as the main sellers of units in larger buildings, often in preparation for retirement or succession planning, she added.

Huttons Asia Pte. Ltd. CEO Mark Yip noted that strata offices continue to draw “steady interest,” though supply remains limited. Among recent offerings are 108 Robinson Road, 137 Cecil Street, Ascent 456, Fortune Centre, One Sophia, The Golden Mile, and Visioncrest.

“Declining interest rates have resulted in positive carry for funds, and that is spurring demand in the strata office market,” he said in an emailed reply to questions.

Knight Frank LLP recorded 189 strata office transactions in the first half worth $699.6m, including 15 deals above $10m. Notable transactions included multiple units at 20 Collyer Quay ($91.8m), Tokio Marine Centre ($67.5m), and 108 Robinson Road ($55.8m).

Beyond offices, co-living is emerging as a growth area. Investors are shifting into the hospitality-led housing segment, with Jones Lang LaSalle, Inc. (JLL) reporting more than $1.4b in co-living deals since 2022.

Retail is also evolving. JLL Senior Director Zoe Ho said demand is moving away from traditional shopping formats toward mixed-use, lifestyle-driven spaces that blend retail with entertainment and community elements.

In the industrial sector, Cushman & Wakefield Director for Industrial Leasing Darren Lu sees stronger activity in data centres and high-specification assets, spurred by growth in technology, artificial intelligence (AI), and life sciences. Ho added that life-science real estate would benefit from ageing populations and biotech advances.

Momentum is also building in the residential market, with Yip highlighting five upcoming project launches: Faber Residence, Penrith, Skye at Holland, The Sen, and Zyon Grand.

Overall, Poh said she remains cautiously optimistic that Singapore’s transaction volumes will increase over the next year.