Tag Archives: South Beach

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

Leases secured for 80% of office space in South Beach project

The downtown skyline in Singapore will see another addition once the S$3 billion South Beach project – a mega mixed development at Beach Road – is up and running over the next year.

The project’s developers City Developments and IOI Group have secured leases for 80 per cent of the office space, and its first corporate tenant will move in early next year.

Office space comprises about 30 per cent of the 1.65 million square feet development, with gross rents ranging from S$9 to S$12 per square foot per month. The tenants are from sectors such as financial services, IT, business consulting and fast-moving consumer goods.

Analysts Channel NewsAsia spoke to said the occupancy rate shows that South Beach is viewed as a strong alternative to office spaces in Raffles Place and Marina Bay. Chesterton Singapore’s managing director Donald Han said that there are also other factors which contributed to the high occupancy rate, such as the project being “the only prominent office to be completed in the next two years.”

The project also houses a 654-room designer hotel, around 37,000 square feet of retail space and a private club. In addition, there will be 190 luxury residences – with developers saying that they are considering “all possibilities”, including renting the units out. Its developers are not in a hurry to sell the units as the site is not affected by Qualifying Certificate rules, which require all units to be sold within two years of completion.

The site was acquired for about S$1.69 billion from the Urban Redevelopment Authority in 2007.

Mr Aloysius Lee, CEO of the South Beach Consortium, said: “You know the situation is not very good for the high-end market at this time due to various reasons. But we are very confident that it will recover very soon. So we have plans for all options, and at the right time, we will launch the product.”

Source : Channel NewsAsia – 18 Dec 2014

South Beach development’s South Tower ‘topped out’

The mixed-use development South Beach saw the “topping out” of its South Tower on Tuesday (Dec 2). The 45-storey tower along Beach Road is the taller of two buildings within the development.

Jointly developed by City Developments and Malaysia’s IOI Group, the project blends four historic conserved buildings with contemporary design. The South Tower will house a luxury hotel called The South Beach, which is expected to have its soft opening in April next year.

Meanwhile, the 34-storey North Tower was “topped out” earlier this year. It will have 500,000 square feet of top grade office space and is expected to get the Temporary Occupation Permit later this month. The first tenant is expected to commence business in the first quarter of next year.

Source : Channel NewsAsia – 2 Dec 2014