SINGAPORE – An entire floor in Suntec City Tower 2 is up for sale at an indicative guide price of $36 million.
The price for the 9,989 sq ft office space comprising four strata titles works out to $3,600 per sq ft (psf), said its marketing agency, Knight Frank, on Tuesday (July 12).
The space, which is currently tenanted, is located above the 40th storey and has panoramic views of the sea and city.
“The column-free and regular shape offer flexibility and efficiency in layout planning,” said Knight Frank.
The sale is open to both locals and foreigners, with no additional buyer’s stamp duty or seller’s stamp duty imposed.
If sold at the asking price, the transaction will overtake the previous record for the highest price psf achieved for an entire floor in Suntec City Tower 2 set in June.
A Singapore permanent resident of Chinese descent last month bought the entire 30th floor in the building for $38.8 million – the largest transaction by quantum this year.
Brokered by Huttons Group, the sale of the 11,743.52 sq ft space works out to about $3,300 psf.
Suntec City is one of the largest mixed-use developments in Singapore and comprises a shopping mall, five Grade A office towers and a convention centre.
Tower 2 has 44 storeys.
Knight Frank’s executive director of capital markets, Ms Mary Sai, said demand for Suntec City offices remains robust as shown by recent transactions.
She said that apart from the record-breaking sale last month, two units on the 19th and 28th storey in Tower 1 were sold at $3,300 psf and $3,280 psf respectively in April.
“Given the current market condition and strong demand for strata commercial units, the offered listing’s guide price of $3,600 psf is reasonable and in line with the recent office transactions at Suntec City,” said Ms Sai.
“This asset is suitable for owner-occupiers and investors who view commercial properties as safe-haven assets. Furthermore, buyers have the option not only to buy the whole floor but individual strata lot basis.”
Mr Daniel Ding, Knight Frank’s head of capital markets for land and building, international real estate and industrial purposes, said supply of good-sized strata units in prime areas will be limited and he expects the listing to attract keen interest.
This is due to the recent government announcement that strata subdivision of commercial complexes or mixed-use developments with a commercial component will no longer be allowed in central areas.
Prices of office space in Singapore’s central region rose 4.4 per cent in the first quarter of 2022, reversing from a 1.8 per cent decline in the previous three months, according to data from the Urban Redevelopment Authority.
Property analysts said the strata office market is gradually picking up amid limited supply and increasing rents, with demand remaining stable.
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