Prices of Singapore Offices Remain Healthy

The number of sales for strata-titled office property dropped by 72.7% in the first 5 months of 2015, a record of 81 cases compared last year with 297 cases.

Cite data as of 11 June 2015 provided by Real Estate Information System (REALIS) of URA, property consultancy noted that this record shows the lowest level since 1H 2009 with 63 caveats recorded.

However, the prices of units of new leasehold office increased to S$2,646 per sq ft during the review from S$2,257 per sq ft in 2H 2015 resulting of the new launch strata office projects like GSH Plaza and continued interest for Vision Exchange.

Resale price of leasehold strata retail properties also improved slightly to S$2,418 per sq  ft from the previous of $2,234 per sq ft, however average prices of Singapore leasehold strata retail properties slipped to S$$3,723 per sq ft from the price of S$4,035 per sq ft in the second half  of 2015.

Looking forward, the total transaction volume is expected to continue subdued to around 400 to 600 units for the whole year since strata-titled commercial properties of Singapore is still held back by the cooling measures of government and the Total Debt Servicing Ratio (TDSR) framework.