A 3,079 sq ft, strata-titled office unit on the 37th floor of Suntec Tower 1 of Suntec City changed hands recently for $10.52 million ($3,417 psf) in August. In terms of price psf, it’s the highest since a similar-sized office unit on the 43rd floor of the same tower changed hands for $10.6 million ($3,443 psf) 12 months ago.
The latest deal of $3,417 psf for the 37th floor of Suntec Tower 1 was brokered by Low Choon Sin, managing partner of SRI Capital Markets. The price achieved translates to a capital gain of 44% over just two years as the seller had purchased the unit in March 2019 for $7.3 million ($2,3470 psf).
The seller had purchased an adjacent 2,196 sq ft office unit for $5.2 million ($2,370 psf) at the same time as the other unit two years ago. This smaller unit is also available for sale.
“One of the draws of this high floor unit is its unblocked view of Marina Bay Sands,” says Low. “High floor units of such sizes are rarely available on the market.” The other draw of Suntec City is the strong community of Chinese businesses that are located there, he adds. The common areas of the office towers at Suntec City were recently refurbished, bringing it in line with other new Grade-A office towers.
Besides business occupiers buying for their own use, strata office units are “an attractive choice for investors who are concerned about the ABSD [additional buyer’s stamp duty]”, says Low. “These investors are keen to invest in Singapore and there’s a lot of liquidity in the market.”
“Suntec City has its own fan base,” notes Low. “One of its main attractions for occupiers and investors is the unblocked views of Marina Bay from the high floors — something which the strata office towers in the CBD may not have,” he adds.
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