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News Release

Singapore

JLL News Flash | Tender closing for commercial GLS site at Beach Road


​​Ms Tay Huey Ying, Head of Research and Consultancy, Singapore

郑惠匀, 研究与咨询部主管 (新加坡)


The tender results for the Beach Road GLS commercial site​ reflect developers’ bullish outlook on Singapore’s office property market.


The site attracted a top bid that surpassed the SGD 1,689 per sq ft per plot ratio site paid for the Central Boulevard site in November 2016, with the second bid coming in at a mere 3.2% below the top bid.


The aggressive bids are likely to have been fuelled by developers’ expectation of keen competition for the site given that optimism is riding high in the office investment sales market on the back of the nascent recovery in the leasing market.  


Indeed, including today’s tender, JLL estimates that developers and investors picked up close to 50% more in sales value of office investment properties (including land) than a year ago. This, in turn, has been underpinned partly by the strengthening CBD Grade A office leasing market. JLL’s preliminary estimates show that the average monthly gross rent of Grade A office space in the CBD strengthened by 4.3% on a quarter-on-quarter (q-o-q) basis to SGD 8.86 per sq ft in 3Q17 following the modest 0.7% q-o-q uptick recorded in 2Q17 that ended eight consecutive quarters of rent decline.  


The bullish bids submitted for the Beach Road commercial site also reflect developers’ confidence in the Beach Road/Ophir-Rochor corridor’s potential to be an office cluster that will complement the existing financial district at Marina Bay and Raffles Place. As of 3Q17, the locality is home to more than 1.6 million sq ft of Grade A office space commanding average monthly gross rents of SGD 8.50 per sq ft.   


It is likely that the winning bidder will look to ride on the current positive home buying sentiment and incorporate private apartments into the proposed development.