23 July 2024, Singapore - PropNex today announced that an entire floor of prime office space on the 31st storey at Suntec Tower 1 in Temasek Boulevard in the city has been listed for sale via private treaty for a guide price of $41.8 million. PropNex, the exclusive marketing agent for the sale, said the guide price works out to an average price of about $3,403 psf, based on the total strata area. The full office floor has a combined strata area of 12,282 sq ft and comprises three individual strata titles. It has a 99-year leasehold tenure with effect from 1989.

Suntec Tower 1 is part of five office towers at the sprawling Suntec City development, which also includes a retail mall and convention centre. Located in Singapore's central business district, Suntec City offers convenience and excellent connectively, being linked to three MRT lines via the Esplanade MRT station, Promenade MRT station, and City Hall MRT station. The development also has ample carparking facilities and easy access to major highways.

Henry Lim Choon Kheng, Associate District Branch Director, PropNex, said, "Strata office space in Suntec City tends to enjoy strong demand among investors and occupiers owing to their central location, the wide range of commercial offerings on-site, as well as the excellent accessibility via public transport. Offices on the high floors are particularly popular as they command panoramic views of Marina Bay downtown and the impressive Singapore CBD skyline. We believe this is a desirable business location for companies not only due to the property's attractive attributes, but having a premium workspace in the city may also play into occupiers' talent attraction and retention strategies."

According to URA Realis caveat data, there were a total of six office transactions at various Suntec City office towers so far this year (till 9 July 2024), fetching an average price ranging from $3,200 psf to $3,817 psf. Specifically, the most recent transaction at Suntec Tower 1 was done in June 2024, with the sale of a 3,078.5-sq ft office on the 37th floor for $11.5 million, or an average price of $3,736 psf on strata area.

Overall, strata office space at Suntec City across the various office towers have been on investors' radar, with 20 transactions in 2021, and 11 and 15 deals done in 2022 and 2023, respectively. The record PSF price for offices at Suntec City was set in September 2022, when the top floor (44th storey) of Suntec Tower 1 went for $3,850 psf, based on a strata area of 10,312 sq ft.

Mr Lim added, "Currently, the entire 31st floor office space at Suntec Tower 1 is fully-tenanted till October 2025, providing an immediate monthly rental income of more than $130,000. We understand that the tenant has expressed an interest to further extending the lease, and this could offer a stable income stream for the successful buyer in the coming years. Given that the full floor comprises three strata units (sized between 3,735 and 4,758 sq ft), the investor will also have the flexibility to keep the whole floor as is, or explore divestment opportunities by selling the separate strata units in the future."

As this is a commercial property, foreigners and companies are eligible to purchase it, and the additional buyer's stamp duty and the seller's stamp duty will not be applicable on the transaction.