The Singapore strata commercial market experienced varied outcomes in the second half of 2024, with strata office sales showing improvement whilst the retail sector faced challenges. Knight Frank Singapore’s Executive Director, Mary Sai, highlighted that both strata office and retail units offer niche opportunities for business occupiers and non-institutional investors.
The strata office market concluded 2024 with 325 units sold, amounting to a total sales value of $1.1m, a slight year-on-year decline of 2.6%. However, on a half-yearly basis, sales value increased by 50.3% to $686.6m in H2 2024. Notable transactions included the sale of a unit at Solitaire on Cecil for $55.2m. The Downtown Core, Rochor, and Orchard areas saw the highest sales volumes.
In contrast, the strata retail market saw a 1.3% decline in total sales value to $214.8m, with 115 deals closed in H2 2024. The average unit price rose by 6.8% to $3,010 psf. Most transactions were under $4m, indicating interest from smaller business owners and investors.
Looking ahead, the strata office market is expected to remain stable, with a projected transaction value of about $1b for 2025. However, the retail sector may continue to face challenges due to inflationary pressures and a strong Singapore Dollar, with sales expected to range between $400m and $500m in 2025.
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