Prime Assets: A Long-Term Strategy
- Prime, scarce assets tend to preserve value across cycles.
- A long-term strategy favours quality location over short-term timing.
- Low leverage and patience reduce forced-sale risk.
As Asia's financial and business hub, Singapore has always drawn commercial real estate investment. After a slow first half of 2024 (high rates, cooling measures), the market is showing signs of recovery.
Office Market Signals
Prime office rents rose 1.3% in the first half of 2024. Grade A CBD vacancies increased to 5.4% in Q2 2024 (from 3.6% in Q1), while Raffles Place/Marina Bay occupancy stayed high at 95.0%. Singapore led the Asia-Pacific for commercial investment with a 462% jump in Q4 2023 volume (USD 4.1 billion), the best quarter in five years.
Shophouses & Strata Offices
Deep-pocketed investors are seeking shophouses for their historical charm, prime locations and value-add potential — limited supply supports strong returns. In H1 2024, 36 shophouses sold for ~S$341.7 million (down 53.3% year-on-year), as most sellers, under no pressure, held out for peak prices. Freehold shophouse average unit prices reached ~S$5,566 psf, up 27.1% quarter-on-quarter. Notable CCR deals ranged from ~$3,552 psf (Blair Road) to ~$14,504 psf (Pagoda Street).
Strata Offices: The Lower-Budget Option
Strata offices start from as low as ~$600,000 (Havelock2, ~$1,572 psf), making them accessible for SMEs and first-time investors. Budgets: low-end ~$600k; mid-range $1.5–3M (International Plaza, The Central); high-end $5M+ (SBF Center, Suntec City). In H1 2024 there were 154 strata office transactions (from 156 in H2 2023), with the average psf down 20.1% to S$2,190. CCR strata offices average $2,700–$3,700 psf, and the segment is projected to reach ~S$1 billion in total sales for 2024.
Suntec City
A prime strata-titled commercial development in the Downtown Core (99-year from 1989), with five office towers, a large mall and a convention centre. Over the past year, transactions averaged ~S$3,391 psf (highest S$3,817 psf), reflecting consistent demand.
The Takeaway
Whether a shophouse with historical charm or a modern strata office in a business hub, the potential for capital appreciation and rental income is significant. As the cycle moves toward growth acceleration into 2025, the time to position is now.