Higher strata office and retail transacted values in 1H2025: Knight Frank
In the strata retail market, there was an uptick in sales value in 1H2025, despite a limited dip in volume. There were 113 strata retail deals in the very first half of the year, contrasted to 116 in 2H2024. “As with strata office units, specific strata retail purchases may not have actually been caught as caveats were not lodged,” Knight Frank includes.
According to Knight Frank, the Downtown Core and the Rochor planning places saw the highest possible variety of transactions. Caveats lodged show 44 units in the Downtown Core switching hands for $471.1 million, though the company adds that the variety of actual deals might be greater, as some customers chose not to lodge caveats.
Notable strata retail deals in 1H2025 consist of the sale of units at Orchard Towers for $54.5 million, or $2,825 psf, in January. Generally, strata retail units negotiated at $3,004 psf in 1H2025, compared to $2,999 psf in 2H2025.
Nevertheless, strata retail sales worth amounted to $292.3 million in 1H2025, 35.5% greater than the $215.8 million in 2H2024. The boost was underpinned by a slightly much higher number of larger deals, says Knight Frank. While the majority of purchases in 2H2024 were smaller bargains of under $4 million, there were ten in 1H2025 that were above $5 million, including four negotiated at above $15 million.
In the strata office market, a sum of 189 transactions were documented in 1H2025, more than the 170 arrangements listing in 2H2024. However, the common unit price of strata office properties marketed slid, decreasing from $2,878 psf in 2H2024 to $2,787 psf in 1H2025.
The biggest strata office deal by absolute price in 1H2025 was the revenue of several units at 20 Collyer Quay for $91.8 million in March, followed by the sale of 3 units at Tokio Marine Centre in January for $67.5 million.
Strata commercial deals observed stable energy in 1H2025, according to a research record by Knight Frank Singapore. Caveats lodged show that both the strata office and strata retail industry documented higher settled valuations in the first half of the year contrasted to the second half of last year.
Looking in advance, the overview for the strata business industry continues to be speculative, in the middle of a background of rising geopolitical strains, recurring protectionist steps by the US and aggravating worldwide problems. Furthermore, the strata retail industry remains to be born down by increasing operating costs and shifting consumer practices, triggering merchants to take on sluggish growth programs, claims Knight Frank.
Amongst strata office buildings in the Downtown Core, Manhattan House on Chin Swee Roadway emerged, logging 27 purchases in 1H2025. “A possible reason for the raised rate of interest could be that investors were acquiring to take advantage of a chance for a potential en bloc sale to happen,” the report adds in.
As a result, total strata office sales amount was marginally greater than the second half of last year, inching up just 0.6% to $699.6 million in 1H2025.
However, the firm notes that opportunities stay in both the strata workplace and strata retail markets. “Palatable and comparatively economical rate quanta in these particular niche sections provide timely and off-beat opportunities that can be attractive for watchful capitalists and end-users,” states Mary Sai, executive supervisor for resources markets at Knight Frank Singapore.
