JLL markets rare freehold strata office at prime Raffles Place

SINGAPORE, 12 March 2024 – A freehold strata office unit in 6 Raffles Quay within prime District 1 is up for sale with an indicative price of $18.8 million according to JLL (NYSE: JLL), the appointed marketing agent for the property. This translates to $3,765 per square foot (psf) based on the approximate strata floor area of 4,994 square feet (sq ft). The property will be sold on a vacant possession basis and would be ideal for business end-users seeking to acquire a prime office space within the CBD to operate their businesses.

Strong asset qualities

Strategically situated in Singapore’s Central Business District (CBD), the property is located on the 16th floor of a 25-storey commercial building known as 6 Raffles Quay. The strata office unit takes up about half of the level’s floor plate and has partial sea views and views of Marina Bay. The development features a generous car park provision of 114 car park lots across levels 3 to 9, offering ample parking spaces for occupiers and visitors to the building. There is also a sheltered drop-off point at the front of the building.

6 Raffles Quay sits on a corner plot at the intersection of Raffles Quay and Telegraph Street, offering excellent connectivity with fully sheltered access to Raffles Place MRT interchange station (North-South and East-West lines). The Downtown MRT station (Downtown line) is also within 5-minutes’ walking distance away. Major expressways such as the Marina Coastal Expressway (MCE), Ayer Rajah Expressway (AYE) and East Coast Parkway (ECP) are in the nearby vicinity.

“Given its size and vacancy, we expect keen interest from family offices and high-net-worth individuals who are looking for high quality freehold commercial assets for long-term capital accumulation and wealth preservation. Owner-occupiers can lock in long-term operational costs and protect themselves against fluctuations in office rental cycles,” notes Terry Wong, Senior Director, Capital Markets, JLL Singapore.

Finite supply of freehold strata-titled office

The availability of freehold strata-titled office spaces in the CBD continues to be constrained due to a scarcity of new supply. The launch of Solitaire on Cecil last year marked the sole occurrence of a new freehold strata office space being offered for sale in the CBD. This was the first since the launch of Crown@Robinson (now known as Tahir Building) in 2015 and Oxley Tower in 2012.

Strata office transactions at Solitaire on Cecil recorded a high of $4,325 psf last year The strong sale performance for the office units at Solitaire on Cecil provides some indication of pent-up demand from the market for high quality strata office assets. Other recent 999-year or freehold strata office transactions include two strata units at Samsung Hub which sold for $3,921 psf in November 2023.

“Strata office assets have been gaining some traction of late. Apart from the freehold offices, leasehold office spaces in District 1 such as in PLUS building and SBF Center have exchanged hands at prices in excess $3,400 per square foot and $3,500 per square foot respectively. The opportunity to acquire a freehold prime CBD strata office asset at a price just above current leasehold office prices, is a very compelling proposition for investors,” adds Wong.

In part, the scarcity of accessible freehold strata office spaces has been further exacerbated by the Urban Redevelopment Authority’s (URA) implemented regulations in 2022, which prohibits the subdivision of commercial components within developments into individual strata commercial units. The restrictions apply to prominent areas such as along Shenton Way, Robinson Road, Anson Road, and Raffles Quay, contributing to the already limited availability of freehold strata office spaces in the CBD.

Foreigners and entities are eligible to purchase the property. Additional Buyers’ Stamp Duty (ABSD) or Sellers’ Stamp Duty (SSD) are not applicable for such commercial assets.

JLL is marketing the property through an Expression of Interest (EOI) exercise that will close on 18 April 2024 (Thursday), at 3pm