Strata office transaction volumes up 6.3% YoY in H2

Average costs of strata offices generated CAGR of 2.7% between end 2017 - 2022.

Strata office investments outpaced the large-ticket office property sales as transaction volumes grew in the last 12 months, CBRE said in the latest report.

“Strata office transactions gained steam in the last few months, as evident from the strong performance at Solitaire on Cecil, the first CBD strata office launch in six years which was fully sold shortly after its launch,” it said.

Tricia Song, CBRE Head of Research, Singapore and Southeast Asia, said strata developments may face some negative perceptions following maintenance issues from their fragmented ownership.

“However, strata offices of today have become more sophisticated. There is now widespread awareness on the importance of maintenance in upholding and enhancing asset values, making some of these strata offices attractive choices for occupiers and investors,” said Song.

Average investment quantum for strata offices can range from as low as $1m, to as high as $60m for an entire floor. 

Transactions that were notable in 2022 include Cortina Holdings Ltd’s purchase of the 4th floor at freehold 15 Scotts for $49.00m ($3,568 psf) for owner-occupation, and the acquisition of the 30th floor at 99-year leasehold Suntec City Tower 2 by a Singapore PR of Chinese descent for $38.75m ($3,300 psf).