Strata office market sales reached $743.1m in H2 22

There were 155 units sold in the second half of 2022.

Knight Frank said the strata office market revealed increased demand driven by flight-to-safety investments, with 155 units sold for $743.1m in the second half (H2) of 2022.

In a statement, the Downtown Core Planning Area had 49 units sold for $404.7m due to preference of residents for locations close to the train station.

For suburban areas, newer modern strata office space close to amenities and train stations saw demand growth.

The majority of transactions in the second half of 2022 (71.6%) were for leasehold properties with an average price of $2,496 per square foot, whilst freehold properties posted 44 transactions with a total value of $254.2m and average price of $3,026 psf.

Outlook

The market is projected to stabilise in 2023 with a transaction value ranging from $1.1b to $1.2b.

The strata retail market saw stable interest throughout 2022, with 117 changing hands in H2 for $331.3 million, a slight decrease from H1 but a 23.9% y-o-y increase from H2 2021. 

The Downtown Core and Rochor Planning Areas continued to be popular destinations for strata retail unit sales. 

The total transaction value for the whole of 2022 was S$667.5 million, the highest since 2014.