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02-03-13, 00:35
http://www.straitstimes.com/archive/saturday/premium/money/story/sizzling-strata-titled-office-space-the-cbd-20130223
Sizzling strata-titled office space in the CBD
3 such projects, featuring no single landlord, seeing good take-up rates
*
Published on Feb 23, 2013
By Cheryl Lim
NEW office projects are a dime a dozen in the bustling city centre but three developments in Robinson Road have been creating a buzz.
The SBF Center, Robinson Square and Oxley Tower are being developed as strata-titled blocks, an unusual move in the downtown area where new buildings tend to have single landlords.
The 31-storey SBF Center next to Capital Tower is being jointly developed by Far East Organization and Far East Orchard.
The top three floors have been set aside for whole-level offices measuring about 10,700 sq ft each while levels 10 to 28 will contain 196 offices between 590 sq ft and 1,400 sq ft each.
Prices for these offices range from $3,300 to $3,800 per sq ft (psf).
A further 48 units have been designated medical suites.
These units, measuring between 660 sq ft and 1,290 sq ft, are going for $3,800 psf to $4,000 psf.
While the developers are waiting for the official go-ahead to start selling units, the take-up at Oxley Tower and Robinson Square has been brisk.
The 32-storey Oxley Tower sold 60 per cent of the 56 office units released within the first few days of its launch last April. Prices ranged from $2,800 psf to $3,490 psf.
Developer Oxley Holdings told The Straits Times this week that it has sold about 85 per cent of the project's 92 office units, hitting an average price of $3,105 psf. Oxley Holdings has retained 12 office units.
Oxley Tower also contains 133 commercial units, which have all been sold.
All the units at neighbouring Robinson Square, also developed by Oxley Holdings, have also been sold, including the 32 offices, which went for an average of $2,837 psf, and the five commercial units.
The response shows that strata-titled blocks have a ready market among buyers, despite newer neighbouring office buildings, like Asia Square and CapitaGreen, which are managed by single landlords.
Analysts say strata-titled property plays a vital role in the Central Business District's (CBD) real estate ecosystem.
Mr Ku Swee Yong, chief executive of International Property Advisor, said such space typically attracts smaller companies that operate in high-value industries like commodities trading, oil and gas services and boutique fund managing.
Ms Sammi Lim, associate director of investment properties at CBRE, said she has seen an increase in the number of China-based investors snapping up strata-titled office units.
"The investors are buying for long-term investments, looking at stable rental yields and potential capital upside over the years," said Ms Lim, adding that office prices have risen over the past 18 months.
She noted that the price increases could be due in part to low interest rates and the spillover effect brought on by investors switching from residential and industrial property to office units.
Mr Ku cautioned that landlords touting strata-titled office spaces in the CBD could face stiff competition, with similar units set to spring up in the upcoming Paya Lebar and Jurong East commercial districts.
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Sizzling strata-titled office space in the CBD
3 such projects, featuring no single landlord, seeing good take-up rates
*
Published on Feb 23, 2013
By Cheryl Lim
NEW office projects are a dime a dozen in the bustling city centre but three developments in Robinson Road have been creating a buzz.
The SBF Center, Robinson Square and Oxley Tower are being developed as strata-titled blocks, an unusual move in the downtown area where new buildings tend to have single landlords.
The 31-storey SBF Center next to Capital Tower is being jointly developed by Far East Organization and Far East Orchard.
The top three floors have been set aside for whole-level offices measuring about 10,700 sq ft each while levels 10 to 28 will contain 196 offices between 590 sq ft and 1,400 sq ft each.
Prices for these offices range from $3,300 to $3,800 per sq ft (psf).
A further 48 units have been designated medical suites.
These units, measuring between 660 sq ft and 1,290 sq ft, are going for $3,800 psf to $4,000 psf.
While the developers are waiting for the official go-ahead to start selling units, the take-up at Oxley Tower and Robinson Square has been brisk.
The 32-storey Oxley Tower sold 60 per cent of the 56 office units released within the first few days of its launch last April. Prices ranged from $2,800 psf to $3,490 psf.
Developer Oxley Holdings told The Straits Times this week that it has sold about 85 per cent of the project's 92 office units, hitting an average price of $3,105 psf. Oxley Holdings has retained 12 office units.
Oxley Tower also contains 133 commercial units, which have all been sold.
All the units at neighbouring Robinson Square, also developed by Oxley Holdings, have also been sold, including the 32 offices, which went for an average of $2,837 psf, and the five commercial units.
The response shows that strata-titled blocks have a ready market among buyers, despite newer neighbouring office buildings, like Asia Square and CapitaGreen, which are managed by single landlords.
Analysts say strata-titled property plays a vital role in the Central Business District's (CBD) real estate ecosystem.
Mr Ku Swee Yong, chief executive of International Property Advisor, said such space typically attracts smaller companies that operate in high-value industries like commodities trading, oil and gas services and boutique fund managing.
Ms Sammi Lim, associate director of investment properties at CBRE, said she has seen an increase in the number of China-based investors snapping up strata-titled office units.
"The investors are buying for long-term investments, looking at stable rental yields and potential capital upside over the years," said Ms Lim, adding that office prices have risen over the past 18 months.
She noted that the price increases could be due in part to low interest rates and the spillover effect brought on by investors switching from residential and industrial property to office units.
Mr Ku cautioned that landlords touting strata-titled office spaces in the CBD could face stiff competition, with similar units set to spring up in the upcoming Paya Lebar and Jurong East commercial districts.
[email protected]