With a target price of $57.1 million, three strata office spaces in Suntec Tower 1 have been put for sale. Two more units on level 16 and the whole 38th floor make up the collection. With a suggested price of $33.8 million, the about 10,097 square foot 38th floor apartment translates to roughly $3,350 psf. With respective guide prices of $11 million ($3,145 psf) and $12.3 million ($3,156 psf), the two flats on the 16th floor measure 3,498 sq ft and 3,897 sq ft respectively. With a 99-year lease from 1989, all apartments leave roughly 64 years on the lease.
The exclusive marketing agent for the properties, CBRE, will handle the sale under an Expression of Interest (EOI) process. Currently owner-occupied, the units can be sold both individually or jointly. They will be accessible either under a short-term leaseback agreement or vacant possession. Especially domestic and foreign investors can buy commercial property in Singapore without paying extra buyer’s or seller’s stamp duty.
Head of capital markets in Singapore at CBRE Michael Tay stresses the chance for investors to profit from Singapore’s strong office market with an existing asset. He notes that prominent strata offices like those in Suntec City are probably going to become more desirable after URA’s 2022 strata subdivision ban on new commercial buildings at strategic Central Area sites is implemented.
While the two 16th floor units were bought together in June 2001 for roughly $9.2 million ($1,250 psf), historical data indicates that the 38th floor was previously purchased in March 1996 for about $18.3 million ($1,817 psf). With strata office spaces in Suntec City trading at an average of $3,411 psf over the previous 12 months, recent market activity points to robust demand. Notable recent purchases include a 2,196 square foot unit on the 37th floor of Suntec Tower 1 selling for $8.09 million ($3,684 psf) in March and a 3,079 square foot unit sold in June for $11.5 million ($3,736 psf).
Part of the bigger Suntec City complex, Suntec Tower 1 is situated at 7 Temasek Boulevard and features a convention centre and retail mall. Its exceptional location within the CBD, serviced by four MRT lines via the adjacent Esplanade, City Hall, and Promenade stations, adds to its attraction for possible investors seeking well-connected commercial real estate in Singapore’s busy corporate sector.
