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18 June 2012

18th June, Monday




Strata office market sees brisk activity

Source: Business Times

Some $1.1 billion of strata office properties were transacted in the first five months of this year, just shy of the $1.3 billion for the whole of last year, driven largely by liquidity, investors switching out of the residential sector, and developers minting strata offices in new projects to cater to strong demand.

A property consultancy’s analysis of caveats for strata office space lodged with the SISV Realink and URA Realis databases shows that Paya Lebar Square had the highest strata office sales in the first five months of this year, with $322.3 million of deals. It was followed by The Adelphi, a 999-year leasehold completed office-and-retail complex near City Hall MRT Station, at $94.3 million, or an average price of $1,893 per sq ft.

Another completed development, Burlington Square at Bencoolen Street, was in third spot, with $89.3 million and averaging $1,318 psf. Burlington Square is on a site with a remaining lease tenure of about 83 years.

Strata offices in three new projects in the Tanjong Pagar, Robinson Road and Shenton Way area locations also featured in the caveats analysis this year - Far East Organization's PS100 at Peck Seah Street, with $83.6 million of caveats lodged, reflecting an average price of $3,070 psf; Eon Shenton with $67.3 million; and Oxley Tower, at $42.8 million or $3,180 psf.

In the pipeline is the redevelopment of KeyPoint in the Beach Road area and Tower 15 at Hoe Chiang Road, which could generate a fresh supply of strata offices in the primary (or developer sales) market. Investors are also awaiting the launch of Far East Organization's The Index at Cecil Street/Robinson Road, next to Capital Tower.


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