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Sales volume of strata-titled offices up 22.8% in 1H

Sales volume of strata-titled offices rose 22.8 per cent in the first six months of this year compared to the second half of 2013.

SINGAPORE: Sales volume of strata-titled offices rose 22.8 per cent in the first six months of this year compared to the second half of 2013. According to a report by property consultancy Knight Frank on Thursday (Aug 7), there were a total of 248 transactions of such properties in the first half of 2014, compared to 202 deals in the second half of 2013.

Main contributors of leasehold strata-titled office transactions in the first six months this year are Prudential Tower, Vision Exchange, and International Plaza. Meanwhile, transactions of freehold properties mainly came from ARC 380 and Hexacube.

Ms Mary Sai, Knight Frank's Executive Director & Head of Commercial Sales, said in the report that the "strata-titled office market is expected to hold steadily in the next few quarters, supported by healthy rental growth and limited supply of well-located strata offices available for sale."

Total transaction volumes for strata-titled retail properties have declined 68 per cent, from 388 transactions in second half of 2013 to 124 transactions in first half of 2014, while transaction volume of shophouses fell to 40 transactions in the first half of this year from 49 transactions in the second half of last year.

The report said sentiment in the strata-titled retail market has been "adversely affected by the total debt servicing ratio (TDSR) ruling, rising operating costs due to the tight labour supply conditions, and growing competition from online retailing."

Looking ahead, Knight Frank expects demand for shophouses and strata-titled retail properties to remain low in the second half this year. This is due to the compressed yields and current mismatch between buyers' bids and sellers' asking prices.

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