The entire fifth floor of the 11-storey Tung Ann Association Building, a freehold office property along Cecil Street, is up for tender with a guide price of $11.5 million, according to a May 22 press release by ETC. The floor plate spans a strata area of 4,338 sq ft, reflecting a price of $2,651 psf.
“Strata office supply in the central area has been significantly constrained since URA’s restriction on strata subdivision in commercial and mixed-use developments in March 2022,” says Swee Shou Fern, head of investment advisory at ETC.
In the last 30 years, Tung Ann Association Building has only recorded one transaction when an office floor on the sixth storey sold for $5.5 million, or $1,268 psf in June 2010.
“Freehold strata offices are highly sought after by corporate investors, family offices, and high-net-worth individuals looking to preserve and grow capital in Singapore’s resilient real estate market,” adds Swee.
Additionally, Swee notes that owner-occupiers aiming to establish a strategic foothold in the CBD may find these freehold assets attractive, as they offer the opportunity to centralise operations by consolidating into one central location for space efficiency.
Recent market activity for strata offices of freehold or 999-year tenure along Cecil Street and Robinson Road remained resilient, according to ETC. Recent transactions include a 1,259 sq ft office at Oxley Tower that transacted at $2,660 per sq ft in February, and a 2,562 sq ft office in Samsung Hub, which sold for $4,316 per sq ft in April.
Tung Ann Association Building is located on the corner of Cecil Street and McCallum Street, and is within walking distance to Tanjong Pagar MRT station, Shenton Way MRT Station and Telok Ayer MRT station, The property is also within close proximity to several eateries and food centres.
The property is open to both local and foreign buyers and is not subject to Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD).
The tender for the office floor is expected to close on June 19.
