A prime office unit situated at Samsung Hub, a top-rated office tower located on Church Street in the central business district (CBD), has been transacted for $14.8 million. According to Knight Frank Singapore, who facilitated the deal, the unit occupies a high floor and covers a total area of 3,595 square feet. This equates to a price of $4,117 per square foot.
As previously reported by EdgeProp Singapore in July, a unit of the same size at Samsung Hub was on the market at a guide price of $4,350 per square foot, or approximately $15.6 million.
Samsung Hub is a 999-year leasehold commercial development comprising 30 storeys. It is strategically located in the CBD in close proximity to major financial institutions and corporate headquarters. The office is also conveniently situated near the Raffles Place MRT Interchange Station (serving the North-South and East-West Lines) and the Telok Ayer MRT Station (serving the Downtown Line).
The most recent office unit sale at Samsung Hub was a 2,906 square feet space on the 10th floor, which was transacted for $11.4 million ($3,921 per square foot) on November 17, 2023. Another unit of similar size, located on the same floor, was also sold on the same day for $12.49 million, equivalent to $3,921 per square foot.
According to Mary Sai, Executive Director of Capital Markets (Land and Building, International Real Estate) at Knight Frank Singapore, “With this successful transaction, we are pleased to see prices nearing the levels seen in January 2022, when a 3,875 square feet unit was sold for $4,155 per square foot. This demonstrates the strong demand for well-located freehold offices from private wealth groups, investors, and smaller businesses.”
Sai also notes that there is currently a limited supply of such prime office spaces, which further intensifies the interest from potential buyers.
A total of 49 freehold and 999-year strata offices were sold in the first half of 2024, compared to 42 transactions recorded in the second half of 2023.
When contemplating an investment in a condominium, it is essential to also evaluate its potential rental yield. Rental yield refers to the annual rental income as a percentage of the property’s purchase price. In Singapore, the rental yields of condos can vary drastically, depending on factors such as location, property condition, and market demand. Generally, condos in high-demand areas, such as those near business hubs or educational institutions, tend to offer more favorable rental yields. To gain valuable insights into the rental potential of a specific condo, it is crucial to conduct comprehensive market research and seek guidance from real estate agents. Additionally, exploring new condo launches can offer advantageous investment opportunities.
In a separate record-breaking deal, Parkway Hospitals Singapore recently purchased an entire strata office floor at Tong Building on Orchard Road for $31.33 million ($4,562 per square foot). The 6,867 square feet space, which was the sixth floor of the building, is now owned by Parkway Hospitals.