Higher strata office and retail transacted values in 1H2025: Knight Frank
Notable strata retail transactions in 1H2025 consist of the sale of units at Orchard Towers for $54.5 million, or $2,825 psf, in January. Typically, strata retail units negotiated at $3,004 psf in 1H2025, contrasted to $2,999 psf in 2H2025.
Strata commercial contracts viewed stable momentum in 1H2025, according to a research study record by Knight Frank Singapore. Cautions lodged show that both the strata office and strata retail industry documented greater negotiated values in the very first half of the year compared to the second half of last year.
The biggest strata workplace deal by outright value in 1H2025 was the transaction of numerous units at 20 Collyer Quay for $91.8 million in March, adhered to by the sale of 3 units at Tokio Marine Centre in January for $67.5 million.
Nevertheless, strata retail sales worth amounted to $292.3 million in 1H2025, 35.5% higher than the $215.8 million in 2H2024. The rise was underpinned by a slightly much higher lot of bigger deals, states Knight Frank. While a lot of transactions in 2H2024 were smaller sized deals of under $4 million, there were ten in 1H2025 that were above $5 million, consisting of 4 negotiated at above $15 million.
Looking in advance, the outlook for the strata business market continues to be tentative, amid a background of rising geopolitical tensions, continuous protectionist moves by the US and worsening global problems. In addition, the strata retail sector remains to be weighed down by rising operating expense and moving buyer behavior, prompting retailers to adopt slow development programs, says Knight Frank.
Nonetheless, the firm notes that chances stay in both the strata office and strata retail markets. “Palatable and comparatively inexpensive cost quanta in these niche sections provide timely and off-beat possibilities that can be attractive for careful investors and end-users,” states Mary Sai, executive administrator for resources markets at Knight Frank Singapore.
In the strata office market, a full of 189 deals were recorded in 1H2025, greater than the 170 deals registered in 2H2024. Nonetheless, the standard unit rate of strata office real estates sold slid, dropping from $2,878 psf in 2H2024 to $2,787 psf in 1H2025.
Because of this, overall strata office sales amount was marginally greater than the second half of previous year, inching up just 0.6% to $699.6 million in 1H2025.
In the strata retail market, there was an uptick in sales value in 1H2025, in spite of a limited dip in volume. There were 113 strata retail deals in the initial half of the year, matched up to 116 in 2H2024. “Similar to strata office units, specific strata retail deals may not have actually been recorded as cautions were not lodged,” Knight Frank adds.
Among strata office complex in the Downtown Core, Manhattan House on Chin Swee Road emerged, logging 27 transactions in 1H2025. “A possible reason for the boosted rate of interest could be that financiers were acquiring to take advantage of a possibility for a potential en bloc sale to happen,” the record adds in.
According to Knight Frank, the Downtown Core and the Rochor planning locations saw the greatest number of deals. Caveats lodged show 44 units in the Downtown Core shifting hands for $471.1 million, though the company includes that the variety of real offers might be higher, as some buyers decided on not to lodge caveats.
