Singaporean strata-titled office market on the rise | 11 August 2014
Singapore’s strata-titled office market will remain steady in the coming months, amid healthy rental growth and a lack of supply.
In its latest report, property firm Knight Frank claims that transactions involving strata office properties grew by nearly 23 per cent during the first half of 2014. In total, 248 deals were agreed between January and June, compared to 202 during the latter half of 2013.
Strata-title is a type of property ownership involving apartment blocks and other horizontally subdivided towers with shared areas.
Despite obvious growth in the office market, the report shows that retail sales were down for the first half of 2014. According to channelnewsasia.com, sales dropped from 388 between July and December to just 124, marking a decline of 68 per cent.
In the report, Knight Frank’s executive director and head of commercial sales, Mary Sai, says the strata retail market in Singapore has been: “adversely affected by the total debt servicing ratio (TDSR) ruling, rising operating costs due to the tight labour supply conditions, and growing competition from online retailing.”
According to msn.com, the company’s experts also expect confidence in this part of the market to remain low over the next six months, simply because of the clear gap between sellers’ asking prices and buyers’ offers.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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