[New Launch] One Sophia sells nearly 30% of strata office units at an average of $3,330 psf

SingHaiyi and its joint venture partner Ultra Infinity have sold 23 of the 79 strata office units released during the launch weekend on 19 and 20 October. The transacted units range from 720 sq ft to 4,530 sq ft, fetching an average selling price of $3,330 psf.

One Sophia is the redevelopment of the former Peace Centre and Peace Mansion, which was acquired en bloc by the SingHaiyi-led joint venture in December 2021 for $650 million.

The new mixed-use development comprises a 13-storey commercial tower featuring 122 strata office units and 127 retail units, along with a 367-unit residential component named The Collective at One Sophia. The condominium is slated for launch next year.

One Sophia is situated at the junction of Sophia Road and Selegie Road in prime District 9. Blending office, retail, and residential spaces across an expansive curvilinear landscaped deck, the project will establish a sculptural landmark at one of Singapore's most iconic intersections. Residents will be able to enjoy a private sanctuary in a serene neighbourhood, while retail and commercial occupiers benefit from prominent main-road frontage.

The launch of the strata office units marks the sale of approximately 19% of the development's total strata office inventory, with transacted prices ranging from $3,121 psf to $3,493 psf. While the initial preview and sales launch were open exclusively to invited prospective buyers and investors, the sales gallery is now open to the public.

SingHaiyi Group shared that the developers are thrilled by the enthusiastic market reception for One Sophia's strata office units.

The project's strategic location and competitive pricing have strongly appealed to both end-users and investors hailing from Singapore, China, Indonesia, and the Philippines.

One Sophia is located close to four MRT stations: Dhoby Ghaut Interchange, Bencoolen, Rochor, and Bras Basah. It is also in close proximity to the Orchard Road shopping belt, Raffles Place, and City Hall. Nearby educational institutions include Singapore Management University (SMU), University of the Arts Singapore (UAS), School of the Arts (SOTA), Nanyang Academy of Fine Arts (NAFA), and LASALLE College of the Arts.

In a joint media release, SingHaiyi added that negotiations are currently underway for several bulk purchase deals involving contiguous units and entire office floors.

Amid healthy demand and buying interest for both new and existing strata office units in the market, prospective office investors often view newly built developments as more appealing for tenant leasing demand and capital appreciation potential.

Demand for office space across the Central Region remains resilient, with overall occupancy rates and rental levels in the Central Business District (CBD) and city fringe holding firm.

Average gross rents for Grade-A offices in the Beach Road/Middle Road precinct range from $9.85 to $10.35 psf per month, with occupancy hovering near 92%. In comparison, Grade-A office gross rents in Raffles Place/Marina Bay range between $10.25 and $10.75 psf per month, with an occupancy rate of 94.6%.

Occupiers looking for a vibrant location at the nexus of the cultural and commercial districts will find One Sophia's location a refreshing work and business destination.

Another key driver underpinning demand for new strata commercial units is that, unlike residential properties, strata office and retail units are not subject to Additional Buyer's Stamp Duty (ABSD).