Singapore Property News This Week #266

Residential

Eden Hall Bungalows up for sale again

Two freehold Good Class Bungalow (GCB) plots from the official residence of the British High Commissioner to Singapore, has been relaunched for sale by public tender by the British government. Bids at the relaunch were about 20 per cent lesser than guide prices, possibly due to weak market sentiment brought about by the global stock market volatility and concerns about China’s slowdown. Both plots consist of a front and rear plot and are located on Nassim Road.

(Source: Business Times)

Commercial

77 Robinson Road back for launch

77 Robinson Road, formerly known as the Singapore Airlines (SIA) Building, has a net lettable area of some 293,269 sq ft and is relaunched at a guide price of about S$575 million. The building has an occupancy rate of close to 90 per cent, with the main tenants like Adidas, Dentsu, DVB Bank and Sojitz. CBRE expects the target market of buyers to be “quite wide and diverse”.

(Source: Business Times)

Marine One secures leasing deals

The freshly “topped out” Marina One has secured office leasing pre-commitments of over half a million square feet and is one of the largest office leasing deals in 2016. Many other multinational companies are also looking at securing office spaces over multiple floors, said Kemmy Tan, chief executive officer of M+S, a joint venture between Malaysia’s Khazanah Nasional and Singapore’s Temasek Holdings. The 3.67 million sq ft Marina One includes Marina One East and West Towers, two prime Grade-A office towers of approximately 1.88 million sq ft; 1,042 units of city residences; and 140,000 sq ft of retail at the retail podium.

(Source: Business Times)

Grade A+ Marina Bay Office rent weakens

Premium grade office rentals continued to weaken this quarter amid pressure from upcoming big office project completions and weak demand, resulting in heightened competition for tenants. The property consultancy said the gross effective average monthly rental value for Marina Bay/Raffles Place Grade A+ office space in Singapore eased 3.6 per cent to S$9.88 per square foot during the second quarter of this year from S$10.25 psf in the previous quarter. Knight Frank noted that the rental drop in Q2 was amid heightened economic volatility and an increasingly cautious business outlook, not forgetting the weight of substantial impending supply completions.

(Source: Business Times)

Low rent draws big firms to Marina Bay offices

Several big potential office leasing deals are involving relocations of big firms, as occupiers take advantage of current low rents amid a wave of new office completions. Many are also drawn to the newer buildings in the Marina Bay area which offer greater space efficiency due to larger floor plates. However, net office demand is not expected to increase much. Many major tenants whose leases are up for renewal are weighing the pros and cons of relocating to new premises versus renewing leases for existing premises.

(Source: Business Times)

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