Strata shop sales hit 17-year high
A total of 669 units were sold in 1H12--the highest since 1995.
According to Knight Frank, 669 strata shops have been transacted in 1H/2012, an all time high since 1995 and having exceeded the total transactions for the whole of 2011 (624 transactions). The main driver for strong sales came from the primary market accounting for some 66% of all transactions.
Here's more from Knight Frank:
In 1H/2012, the bulk of new strata shop supply was primarily located in the central region such projects in the suburbs such as Space @ Kovan and Vibes @ East Coast. The average unit price in the primary market was $3,273psf in 1H/2012, some 24% higher compared with 1H/201.
This was due to the higher rates that new strata units at the Central Region have over those at suburban areas. New strata shops with longer tenures saw strong buying interest. Bugis Cube with a total of 91 units of 999 years tenure and an average sale price of $5,000psf has already seen 89% of their units sold after being on the market for a mere 2 weeks since its launch.
East Village, located at Upper Changi Road with 108 commercial units of freehold tenure saw an average sale price of $5,200psf. It now has only 5 units remaining. Investors view such properties as good investment for the longer term given their longer tenure and retail conducive locations. Notwithstanding the availability of new supply for strata shops over the last two years, new strata shops are still regarded as rare as they are usually found at established strata shop locations such as People’s Park Complex and Bukit Timah Plaza.