CBD property market heating up despite gloomy outlook

SINGAPORE (Nov 29): The Singapore Central Business District has just seen its fourth major office transaction in 2016, after CLSA Capital Partners acquired 77 Robinson Road for $531 million. The sale of One George Street is also said to be under negotiation.

UBS analyst Michael Lim notes that CLSA’s acquisition price of $1,810 psf based on a net lettable area of 293,000 sf was on par with the fair value of $1,787 psf for Capital Tower just across the road.

Even in retail properties, the CBD area is rife with activity. Perennial Real Estate and Singapore Press Holdings are acquiring a 60% stake in Chinatown Point Mall, valuing the 213,000 sf property at $442.5 million, or $2,077 psf.  

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