According to a quarterly report by Savills Singapore, business confidence and hiring expectations of nonfinancial firms in Singapore remain optimistic, driving up rents in Grade-A offices in the CBD by 1.2% q-o-q as at end-1Q2013. A healthy take-up of 489,000 sq ft by private equity, oil and gas and trading companies, coupled with no new supply in the quarter, resulted in vacancy rates falling to 5.9%.
The strongest demand was in Marina Bay, with average rents of prime offices there rising 2.9% q-oq. Capital values for Grade-A offices reached $2,667 psf, growing for a second consecutive quarter despite moderate investment activity in the office sector. Demand is set to be driven by industries such as oil and gas, chemicals and IT as the financial sector deleverages, says Savills.
Source : TheEdge – 29 Apr 2013
Savills has launched 28 strata commercial units at Southbank, a mixed-use development located at 883 North Bridge Road, for collective sale by expression of interest (EOI) at S$56 million or S$1950 psf.
“The strata commercial market is performing well and can be expected to continue on the back of demand from end users and investors alike. Strata offices in CBD have exceeded S$3000 psf whilst those outside the core CBD locations or in the suburban areas look set to cross the S$2000 psf levels going by recent land prices achieved. This is an opportunity for someone to take position in this market segment, enjoy an income now and benefit from further upside through strata sales over the near to medium term,” noted Steven Ming, Deputy Managing Director and Head of Investment Sales at Savills, the sole marketing agent of the property.
Comprising of a 20-storey commercial block and a 40-storey residential block, the development is situated at the fringe of the CBD and is near Lavender MRT station and the upcoming Kallang iPark.
“Rejuvenation in this area is ongoing as developments at Kallang iPark located across Southbank complete. Even the site located next to Southbank could be slated for a new mixed used scheme going by the current master plan 2008 which has earmarked it as a white site. As and when these projects come to fruition, they could give capital values in this area a further boost,” Ming further noted.
The units on sale, of which 85 percent are located between floors seven and 20, comprise of three singplex, 24 duplex loft and a ground level retail unit. The office units measure between 463 sq ft and 1,593 sq ft, while the ground level retail unit stands at 129 sq ft.
Tender for the EOI will close on 28 May.
Source : PropGuru – 24 Apr 2013