A Grade A office unit at the prestigious Samsung Hub on Church Street in the CBD has recently been sold for a staggering $14.8 million. According to Knight Frank Singapore, who brokered the deal, the unit occupies a high floor and boasts a spacious 3,595 sq ft. This means that the unit was sold for $4,117 per square foot (psf).
Previous reports from EdgeProp Singapore in July had revealed that a similar-sized unit at Samsung Hub was on the market with a guide price of $4,350 psf, amounting to approximately $15.6 million.
The 30-storey Samsung Hub is a 999-year leasehold commercial development situated in the heart of the CBD. It is strategically located near major financial institutions and corporate headquarters, making it a prime location for businesses. The building is also conveniently close to the Raffles Place MRT Interchange Station (serving the North-South and East-West Lines) and the Telok Ayer MRT Station on the Downtown Line.
The most recent transaction at Samsung Hub was on November 17, 2023, when a 2,906 sq ft unit on the 10th floor was sold for $11.4 million ($3,921 psf). On the same day, another unit measuring 3,186 sq ft was also sold for $12.49 million at the same price of $3,921 psf.
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Commenting on the latest transaction, Mary Sai, Executive Director of Capital Markets (Land and Building, International Real Estate) at Knight Frank Singapore, says: “This sale brings us close to levels seen in January 2022, when a 3,875 sq ft unit was sold at $4,155 psf.” She adds that there is a high level of interest in well-located freehold offices from private wealth groups, investors, and smaller businesses. However, there is a shortage of such spaces in the market to meet the rising demand.
In the first half of 2024, a total of 49 freehold and 999-year strata offices changed hands, which is seven more transactions than the 42 recorded in the second half of 2023.
Earlier this month, a record-breaking sale took place at Tong Building on Orchard Road, where an entire strata office floor was sold for $31.33 million at $4,562 psf. This 6,867 sq ft space was purchased by Parkway Hospitals Singapore.
Such high-value transactions in the commercial property market indicate a growing trend of businesses and investors seeking prestigious and well-located office units for their operations. With the recent sale of the Tong Building floor and the Samsung Hub unit, it is evident that the demand for prime office spaces in Singapore remains strong and competitive.