Strata office transaction value shrinks to $365.1m in H122
Compared to H221, the H122 figure represents a 15.7% decline.
With only 145 units sold, strata office transaction value shrank by 15.7% to $365.1m in H122 when compared to H2 21, data from Knight Frank showed.
Comparing the H122 figure to the same period last year when $703.5m was registered, the transaction value was almost halved.
According to Knight Frank, the slowdown in sales activity in the market was likely due to the shrinking saleable stock of strata offices.
“With the recent successful collective sale of a few strata commercial buildings, existing owners of other strata buildings may be holding on to their units in hopes of also embarking on the enbloc route,” Knight Frank said.
“As such, investors with a view towards capital gains might also tap into the market for the enbloc potential of strata offices,” the property expert added.
In H1 22, most of the transactions in the Downtown Core Planning Area were strata offices in older buildings that possess enbloc potential or have been launched for a collective sale.
The interest in strata offices with enbloc potential will push demand for the market in the remaining months of the year, accordion to Knight Frank.
For the whole of 2022, Knight Frank said total transactions could hover within $600m to $700m.