Strata-titled office sales quadruples to $485.03 million

This crazy climb was likely triggered by the increase in the number of new launches in 2Q12.

Colliers International said that the commercial sector also saw strata-titled office sales (above $5.00 million each) more than quadrupled to $485.03 million in 2Q 2012 from the $102.03 million recorded in the first three months in 2012.

Here's more from Colliers International:

The renewed interest in the strata-titled office market was likely to have been triggered by the increase in the number of new launches such as Oxley Tower at 138 Robinson Road and Eon Shenton at 70 Shenton Way which have drawn keen interest from owner-occupiers and investors due to their inherent investment potential including a limited in stock of such space and their relatively higheroccupancy rate.

Strata-titled office investment sales value was also bolstered by the conclusion of two en bloc strata transactions, the larger of which was the sale of 66 strata-titled office units in Burlington Square at 175 Bencoolen Street for $89.30 million or $1,318 per sq ft of strata-titled area. The buyer – a joint venture between Guthrie GTS Ltd and Sun Venture Property Pte Ltd is expected to enjoy a net yield of 3.5% to 4.0% for the remaining interest of about 83 years.

The conclusion of the aforementioned three big-ticket deals and the buoyant strata-titled office market boosted the investment sales value of commercial properties in 2Q 2012 by 65.8% quarter-on-quarter (QoQ) to $1.55 billion, accounting for 17.4% of the quarter’s total investment sales of $8.90 billion.