Strata Office Units Sale Cecil Place 3780 Psf
Cecil Place is a new, 15-storey strata-titled office development that has just been launched in Singapore. The previous office building at 137 Cecil Street has been redeveloped by DP Architects and will now feature 30 strata office units for sale as well as a three-storey retail podium. Completion of the project is expected to be in the next year. The office units are priced from $3,780 per square foot (psf).
According to Melvin Chay, senior director of capital markets at Knight Frank Singapore, this development is likely to attract firms that are currently located in the CBD and are looking to upgrade to a new building with better specifications. Alternatively, it could also draw companies from outside the CBD who are looking for a more prestigious address and better connectivity to public transport. Early interest in the project has come from the strata-titled owners and occupiers of Shenton House, which was recently sold en bloc to Lee Yeow Seng, CEO and major shareholder of Malaysia-listed IOI Properties Group. With the redevelopment of Shenton House scheduled for 2027, some of the en bloc beneficiaries are reinvesting their capital while tenants are actively looking for new premises ahead of the building’s demolition.
The strata office units at Cecil Place are designed with flexibility in mind and span the fourth to 15th levels of the building. Individual units range from 1,765 sq ft to 3,918 sq ft, with a typical floor plate of 6,544 sq ft. Each office unit comes with a private en suite toilet and a kitchenette. The 15th level also features a 2,152 sq ft open-air terrace offering views towards Chinatown.
The retail podium consists of two units on the first floor with mezzanine levels (5,037 sq ft and 4,639 sq ft) and two additional shop units on the second and third levels (2,830 sq ft to 3,939 sq ft). The developer is carefully selecting tenants for the retail podium to ensure a complementary mix of F&B, healthcare, and service providers. Chay believes that having strong and relevant retail tenants will enhance the value of the development in the long run.
The site at 137 Cecil Street was previously the Aviva Building, which was acquired by the Zhou family of China’s Shanghai Hengda Group for $210 million in 2015. The same family also holds a 60% stake in the neighbouring YSY Building (formerly Cecil House at 139 Cecil Street), which underwent a two-year refurbishment and is now fully leased.
Meanwhile, a similar redevelopment has taken place across the road from Cecil Place at 140 Cecil Street, previously known as the PIL Building. The joint venture between TE Capital Partners and LaSalle Investment Management acquired the building for $323.8 million in February 2022 and launched it for sale as the 20-storey freehold Solitaire on Cecil in March 2023. By June 2024, all units were sold at prices ranging between $4,130 to $4,200 psf. This was brokered by Yap Hui Yee, executive director of investment sales and capital markets at Savills Singapore.
Similarly, another freehold office building at 108 Robinson Road, which was acquired by PGIM Real Estate in 2021 for $143 million, was fully refurbished and launched for strata sale in early 2024. The only unit that remains available for sale is the third-floor office unit, with the largest sale of three floors (the eighth, 11th, and 12th) totalling 14,252 sq ft being purchased by Kwan Im Thong Hood Cho Temple for $55.8 million ($3,915 psf). This was brokered by Low Choon Sin, managing partner of SRI Capital Markets. The retail units on the first and second levels were also sold for $27.68 million ($4,115 psf) in August to Toa Payoh Seu Teck Sean Tong.
According to Knight Frank’s Chay, Cecil Place is “competitively priced” when compared to recent strata office transactions in the CBD, with prices being lower than those achieved at Solitaire on Cecil and 108 Robinson Road. For example, a typical 3,918 sq ft office unit at Cecil Place would cost about $14.81 million. Additionally, the development is conveniently located within walking distance of three MRT stations: Telok Ayer, Shenton Way, and Tanjong Pagar.
If you have a hankering for global flavors, there’s no need to look further than the vicinity. Sembawang Road and its neighboring areas have an array of options that will satisfy your international cravings. From Korean BBQ establishments to Japanese donburi restaurants, from Thai eateries to Western grills, you’ll find it all here. These dining spots provide comfortable sit-down experiences and see the most footfall during the weekends and holidays. The area is also dotted with cafes and ice cream parlors, perfect for a chill brunch, a cup of coffee, or a sweet treat. These places are especially popular among young couples and students for their inviting atmosphere and diverse offerings. Don’t forget to check out Sembawang EC at Canberra MRT for a great residential option near this bustling food scene.
The lack of new strata office supply is also due to the URA’s decision to curtail the subdivision of commercial office buildings in the Central Area, including the CBD. This measure, which took effect on March 15, 2022, aims to improve the long-term maintenance and quality of prominent commercial developments by ensuring principal ownership and discouraging fragmented ownership. The success of Solitaire on Cecil and 108 Robinson Road reflects the continued demand for freehold strata offices in the CBD.
Chay believes that Cecil Place offers a rare opportunity to own a prime freehold CBD asset at competitive prices. With strong demand drivers and limited future supply, he expects the development to see steady price support and long-term capital appreciation.