Tag Archives: Beach Road

Good prospects for Bugis-Beach Road office submarket: Analysts

South Beach Tower at Beach Road has yet to open its doors to corporate tenants, but analysts have said it has already had an impact on office rents in the vicinity. Over the next 10 years, the Bugis-Beach Road office submarket could become a preferred choice of location for cost-conscious businesses.

The S$3 billion South Beach project has some 500,000 square feet of office space, and tenants are expected to start moving in next year. About 80 per cent of the space has already been leased at a monthly rental rate of S$9 to S$12 per square foot, according to the South Beach Consortium earlier this month. The South Beach project is a joint venture between City Developments and Malaysia’s IOI Group.

Knight Frank’s head of consultancy and research, Ms Alice Tan, said South Beach has helped to lift rents somewhat at other office buildings in the area. “For the last few quarters this year, we saw that rentals in the Suntec area have been creeping up to even beyond S$10 per square foot,” she said.

“One of the good-quality buildings in Beach Road is The Gateway – last year, rents were slightly below S$7 per square foot, as of this year, they were between S$7.20 and S$7.50. As for Bugis Junction Tower, which is right next to Bugis MRT station, rents are up to S$8 per square foot,” she added.

With another mixed-development project, Duo, expected to be completed in 2016, analysts said prospects for the Bugis-Beach Road area are looking up. Said Mr Ku Swee Yong, CEO of Century 21 Singapore: “Over the mid to long term, I believe the area around City Hall to Bugis MRT should have a lot of interest from commercial space users, partly because the transport infrastructure is undergoing a lot of revamp now.

“We will be seeing a new MRT line, and in probably another six to eight years, you will see the North-South Expressway also exiting from the Rochor area.”

Analysts added that the area could potentially prompt businesses keeping a tight eye on their budgets to consider moving from the Central Business District (CBD). According to Colliers International, monthly rents for premium grade office space in the Raffles Place and the new Downtown came in at S$11.67 per square foot in the third quarter, while Grade A offices went for S$10.25 per square foot.

Knight Frank said the anticipated increase in the working population in the Beach Road area will have a positive spillover effect on demand for retail and recreational amenities in the vicinity, and this could boost retail rents in the area in the next two to three years. However, an address in the CBD is still attractive, so Knight Frank said it expects more reshuffling activities there as landlords compete for lease renewals and new tenants.

Source : Channel NewsAsia – 29 Dec 2014

URA seeks to bring ‘24/7′ life to cluster near Bugis

AN EXCITING cluster of shops, homes, entertainment centres, hotel and office space – all set within an attractive garden-like environment in the heart of Singapore’s city centre.

This is the Urban Redevelopment Authority’s (URA) vision for the 2.7-hectare green field development site, :bordering Ophir and Rochor roads, it is putting out for tender.

With analysts forecasting a possible land sales price of over $1 billion, this could be the second most expensive plot of government land sold this year, after the $1.2 billion paid by Parkway for a rare hospital site near Novena.

“Every major developer in town will be looking at it,” said Mr Nicholas Mak, director of consultancy and research at Knight Frank.

“But while they may be paying attention, they may not all bid, because in today’s market, getting the necessary financing is difficult. As this is a big one, some might bid in consortiums instead.”

The URA wants to bring some “exciting 24/7″ life to the area.

The site, located behind Parkview Square, is seen as a natural extension from the established convention, office and hotel hub at Marina Centre.

“New developments in the Beach Road/Ophir-Rochor Corridor will inject vibrancy and activities to this part of the city and form a new office cluster for financial and business institutions that will complement the existing financial district at Raffles Place and Marina Bay,” said the URA’s statement.

The site can potentially accommodate at least 570,000 sq ft of mixed-use space.

At least 40 per cent of the area is zoned for office use and at least 15 per cent must be for hotel and hotel-related uses.

Mr Li Hiaw Ho, executive director of CB Richard Ellis Research, said: “If awarded, the office development is likely to be ready in 2013 and could offer city-fringe office occupiers an option to upgrade or expand into a higher grade quality building without moving into the central business district.

“There would also be the added benefit of proximity to the Circle Line, which would have been completed a few years earlier, as well as the Downtown Rail Transit System (RTS) line that will be completed around the same time,” said Mr Li.

“Thus, an office development on this site should be attractive to occupiers.”

The site is flanked by the historical district of Kampong Glam. Bras Basah and Bugis are also nearby.

In fact, the future development will have direct basement-level connections to the new Bugis Interchange MRT station, with immediate access to the existing East-West RTS line and the recently-announced Downtown RTS line.

The new development can tower up 40 storeys high, providing panoramic views across the city to Marina Bay and the new Sports Hub at Kallang.

Source : Today – 1 Jul 2008