Deal value for strata office units plunged 20.1% in 1H

Average island-wide prices meanwhile improved 29.6%.

Transaction volume of strata office units remained stable in H1 2016 from H2 2015. However, total transaction value fell 20.1% to $400.2m, data from Knight Frank show.

According to the research firm, falls in resale and subsale transaction volumes were partially made up for by an increase in new sales volume. This, it said, was supported by sales of newly-launched Centrium Square.

The freehold mixed development which has retail, office, and medical suite components, accounted for 90.1% (20 caveats) of the total caveats lodged for new sale freehold strata office units in H1 2016.

On a positive note, average resale freehold island-wide prices in H1 2016 improved 29.6% to $2,483 psf from half-year ago. Knight Frank notes that it had declined in H2 2015, due to a significant number of large-sized office unit caveats lodged (above 1,000 sq ft) which transacted at relatively low psf prices.

"Caveats of Centrium Square strata office transactions reveal an average price of $2,513 psf, dragging the average price lower for new sale freehold strata offices to
$2,524 psf in H1 2016 compared to the preceding half-year where there was only one caveat recorded," it said.

Knight Frank added that freehold new sale prices also helped to pull up average island-wide strata office prices, which rose 1.7% to $2,437 psf in H1 2016.