Higher strata office and retail transacted values in 1H2025: Knight Frank
Strata commercial deals observed steady momentum in 1H2025, according to a research report by Knight Frank Singapore. Caveats lodged show that both the strata office and strata retail industry documented higher negotiated values in the very first fifty percent of the year compared to the next part of past year.
Looking ahead, the expectation for the strata industrial industry stays speculative, in the middle of a background of escalating geopolitical tensions, recurring protectionist moves by the United States and aggravating global problems. In addition, the strata retail industry remains to be born down by rising operating costs and changing buyer behaviour, triggering sellers to take on slow growth plans, states Knight Frank.
As a result, overall strata workplace sales quantity was partially more than the 2nd fifty percent of last year, inching up just 0.6% to $699.6 million in 1H2025.
In the strata office market, a full of 189 purchases were filed in 1H2025, more than the 170 arrangements registered in 2H2024. Nonetheless, the standard unit price of strata office real estates sold dropped, falling from $2,878 psf in 2H2024 to $2,787 psf in 1H2025.
The biggest strata office deal by outright value in 1H2025 was the transaction of several 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.
Remarkable strata retail transactions in 1H2025 include 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.
Among strata office complex in the Downtown Core, Manhattan House on Chin Swee Roadway emerged, logging 27 transactions in 1H2025. “A possible factor for the boosted passion could be that clients were buying to capitalize on a possibility for a potential en bloc sale to happen,” the record adds.
Nevertheless, strata retail sales value totalled $292.3 million in 1H2025, 35.5% higher than the $215.8 million in 2H2024. The rise was underpinned by a slightly much higher range of larger deals, states Knight Frank. While many purchases in 2H2024 were smaller sized offers of under $4 million, there were 10 in 1H2025 that were above $5 million, consisting of four transacted at above $15 million.
Nonetheless, the firm marks that chances continue to be in both the strata workplace and strata retail markets. “Palatable and comparatively economical rate quanta in these particular niche segments offer timely and off-beat chances that can be appealing for careful investors and end-users,” claims Mary Sai, executive administrator for capital markets at Knight Frank Singapore.
In the strata retail market, there was an uptick in sales worth in 1H2025, in spite of a marginal dip in quantity. There were 113 strata retail deals in the first fifty percent of the year, compared to 116 in 2H2024. “Similar to strata workplace units, certain strata retail transactions may not have been captured as cautions were not lodged,” Knight Frank includes.
According to Knight Frank, the Downtown Core and the Rochor planning locations saw the highest variety of deals. Caveats lodged show 44 units in the Downtown Core switching hands for $471.1 million, though the firm adds that the number of actual deals might be higher, as some customers chose not to lodge signs.
