Strata Offices Prices Fall 201 H O H 1H2024 Knight Frank
The latest report published by Knight Frank has revealed a 20.1% drop in the average price of strata office spaces in 1H2024. This decline was observed in comparison to the 2H2023 prices, which stood at $2,740 psf. The current average price per square foot for strata office spaces is $2,190 psf.
Situated near the Elta Clementi Condo, residents can easily access various transportation options, including the MRT and an extensive network of bus routes. The nearby Clementi Bus Interchange, known as a bustling hub, offers a multitude of bus services that connect to different parts of Singapore. This convenience allows residents to reach their destinations efficiently, whether they are commuting to work, going to school, or visiting friends and family. With the availability of these bus services, public transportation is always a reliable and convenient choice for residents of Elta Condo.
Despite the drop in prices, the strata office market has seen a relatively stable transaction volume, with 154 transactions recorded in 1H2024, just two fewer than the 156 transactions in 2H2023. However, this decline in prices has resulted in a 15.6% decrease in the total transaction value, which fell from $518 million in 2H2023 to $437.3 million in 1H2024.
The top five transactions by absolute price in the first six months of the year were predominantly sales of units at Vision Exchange and Suntec City. The two developments took the first four spots on the list, with the highest transaction being the sale of a 14,015 sq ft unit at Vision Exchange for $33.3 million ($2,378 psf). The second-highest transaction was the sale of another unit at Vision Exchange, measuring 10,775 sq ft and sold for $25.7 million ($2,381 psf). Suntec City took the third and fourth spots, with a 4,833 sq ft unit on the 36th floor sold for $16 million ($3,311 psf) and a 4,779 sq ft unit on the 22nd floor sold for $15.3 million ($3,200 psf).
The fifth spot on the list was taken by a 2,325 sq ft unit on the ninth floor of Connexion, a mixed-use development along Farrer Park Station Road. The unit was sold for $11.6 million ($5,000 psf) in May, making it the highest recorded transaction for the development in terms of absolute price.
Knight Frank’s report also shows that the Downtown Core Planning Area recorded the most buyers in 1H2024, with a total of 47 transactions amounting to $190.1 million. This was largely supported by the sales of units at International Plaza and Solitaire on Cecil, the only new freehold strata office building in the CBD.
The fall in strata office prices in 1H2024 was mainly driven by declines in the prices of both freehold and leasehold assets. However, Knight Frank’s data reveals that freehold units experienced a slower rate of decline in prices compared to leasehold units. The average price of freehold strata office spaces dropped 13.3% to $2,804 psf in 1H2024 from $3,235 psf in 2H2023, while the average price of leasehold strata units fell by 17.1% to $2,031 psf in 1H2024 from $2,448 psf in 2H2023.
Furthermore, while there was an increase in transaction volume for freehold office units, from 42 in 2H2023 to 49 in 1H2024, the total sales value fell by 49% to $115.4 million. On the other hand, the total sales value of leasehold strata office units increased by 10.4% to $321.9 million in 1H2024, despite a 7.9% decline in transaction volume.
Knight Frank notes that despite the lack of new inventory, the transaction volume for strata office spaces has remained stable for the past 12 to 18 months. The firm expects the upcoming months to be supported by the launch of strata units at 108 Robinson Road and Visioncrest Orchard, two freehold office buildings located at Robinson Road and Penang Road respectively. It projects that the strata office market could achieve a total sales value of $1 billion for the whole of 2024.