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Singapore’s office sector continues to drive the investment sales momentum at S1.772 billion or 36.0 percent of total sales volume lodged in Q3 2014.
In a report released by CBRE on Wednesday (8 October), the result was mainly attributed to the sale of one third of the Marina Bay Financial Centre (MBFC) Tower 3 to Keppel REIT at a total sum of S$1.248 billion, as well as the sale of Straits Trading Building to Sun Venture Group’s Nine Battery Pte Ltd at S$450 million.
Other notable transactions were the bulk purchases of strata office units – the sale of the 18th floor at Samsung Hub for $42.35 milllion, and the sale of 12 units in GB Building for $31.69 million.
According to CBRE, demand for strata office units, especially those that are already completed, remained healthy as “they appealed to mature investors and owner occupiers.”
The Republic’s preliminary total investment volume for Q3 2014 stood at $4.925 billion – a marginal increase of 1.2 per cent compared to the previous quarter, but a substantial drop of 38.9 per cent compared to Q3 2013.
The private sector accounted for S$3.418 billion or 69.4 percent to this quarter’s total investment sales volume.
Notably, 28 of the 34 private deals inked were priced below $100 million, and five between $100 million and $500 million. “The sale of one third of MBFC Tower 3 was the only deal that crossed the $1 billion threshold,” the report noted.
Commenting, Desmond Sim, Head at CBRE Research, Singapore said: “spurred by a continued growth in the office occupier market, investment sales in Q4 2014 will likely be coming from the office sector, especially from the sale of completed strata office units. The market could also be surprised with the possible completion of some residential bulk purchases as the bid-ask price gap further narrows and investors manage to overcome barriers to entry in terms of funding.”
Image: Marina Bay Financial Centre
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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