Savills Singapore is pleased to announce the sale of an office unit at Suntec City Tower 1 for $11.5million.
This is the fourth office strata sale at Suntec City that Jeremy Lake and Sophia Lim from the Savills Investment Sales & Capital Markets team has closed since 2021, making a total tally of $288 million over 8 full floors sold.
The largest transaction in value was $197 million for 6 floors in Tower 1 and 2 brokered in June 2021. In August 2022, the team clocked a record per square foot at S$3,350 (totalling $41.148 Mil) for a floor at Tower 2, the highest at that point in time.
Selected floors of the Suntec City offices are arguably the only strata floors in Singapore that offer unobstructed views of the city skyline, waterfront, Marina Bay district, Kallang River and Singapore Sports Hub.
Sophia Lim, Director from Savills Investment Sales & Capital Markets: “Suntec City offices have always been much sought after by investors, end-users and family offices, and in particular those from Hong Kong, China and India. We have observed strong renewed interest from these group of buyers following the successful completion of the asset enhancement works for Suntec City last year. The asset enhancement works included the upgrading of entrance lobby, reception, concierge area, lift lobbies and restrooms, further strengthening the value proposition of the office floors. We have been successful due to our extensive reach and expertise.”
According to Savills’ Q2 Investment Briefing, there had been a drop of 50.7% quarter-on-quarter (QoQ) to S$3.29 billion in transactional values of real estate investment sales for Q2/2023.
Across the sectors, there was a 9.8% QoQ decline in the investment sales of the residential segment to S$1.56 billion and a 77.9% QoQ drop in the commercial investment sales to S$940.7 million. Hence, this latest full floor sale at Suntec could signal a change in the tide for commercial investment.
Jeremy Lake, Managing Director, Savills Investment Sales & Capital Markets: “The Singapore investment market has been in the doldrums for more than a year with sales volumes down significantly. Institutional buyers have been sitting on the sidelines watching the dramatic increase in interest rates and waiting for signs of a peak. The exception being some higher yielding industrial and retail assets which have been more sought after and are more palatable because of the higher initial yields.”
“While institutional buyers have been on the sidelines, private High-Net worth buyers have been much more active with shop houses and strata offices being flavour of the month. These buyers are less sensitive to higher interest rates and are playing the long game knowing Singapore property prices will rise over time despite some near-term head winds”