According to a news report in the Singapore Business Times, we are seeing an unprecedented interest in Strata Titled commercial property. A high that has exceeded the last record achievedi n 1995 (which is a really long time ago). The report the Business Times quoted that 669 strata shops and 632 strata offices were transacted in the first half of the year. Such strong sales came from the primary market, which accounted for 66 and 72 per cent of all transactions for strata shops and office respectively.
Why the resurgence of interest in such properties, or is it a true result of demand or a change in direction by some property developers?
I would like to say that specifically property developers have been moving towards mixed developments – ie a property with both residential and commercial mix. Such properties are becoming increasingly popular among investors. Oxley Holdings a new entrant into the property development business, has also been successfully and consecutively been launching strata titled boutique office space staring off with Oxley Tower in Robinson Road. With the ABSD and SSD, many local investors are turning to investing in commercial properties. This record sales figure is a result of a lot of hype created as a result of new property launches. This may not be a good sign, as some of these properties are sold at premium prices. As more than half of the purchases are on new projects, it is unclear if these investors are looking at long term investment or for short term speculative flip.