HSBC AM Offers Suntec Office Floors for $106M as Singapore Strata Market Tests Appetite

A set of three floors in Singapore Suntec City complex have been put up for sale with a combined guide price of S$135 million ($106 million), offering investors exposure to one of the city’s most actively traded strata office locations.

The offering comprises level 27 in Tower 1 and levels 12 and 13 in Tower 2, with the three floors spanning a combined 40,300 square feet (3,744 square metres) and generating income from a fully leased tenant roster, sole marketing agent Savills said Friday in a release without naming the seller. Market sources identified the vendor as HSBC Asset Management, which acquired the floors through its 2024 takeover of SilkRoad Property Partners.

Pricing for the portfolio works out to roughly S$3,350 per square foot on strata area, in line with recent transactions in the Marina Centre precinct, where deals have continued to set benchmarks despite a cautious investment climate. Savills is marketing the assets through an expression of interest exercise closing in mid-May, with investors able to acquire the floors individually or as a portfolio with an estimated yield of over 4 percent on a fully let basis.

“Fully leased strata office floors with stable income streams remain highly sought after, particularly among investors seeking yield visibility and flexibility in ownership,” said Yap Hui Yee, executive director of investment sales and capital markets at Savills Singapore. “Suntec City’s established tenant base and central location continue to support resilient demand for quality strata office assets.”

Constrained Supply

SilkRoad had acquired the three floors as part of a six-floor portfolio purchased from Suntec REIT in 2021 for S$197 million, with that consideration carrying a net property income yield of 3.1 percent and price per square foot of S$2,510.

The new offering provides an entry into a tightly held segment where supply has been constrained by planning restrictions and strong investor demand for income-producing central business district assets. Suntec City has long been a focal point for strata office trading in Singapore, with full floors and smaller units regularly changing hands among private investors, family offices and corporate buyers.

In recent years, the complex has seen a steady stream of transactions, including multiple full-floor deals in 2025 at S$3,200 to S$3,364 per square foot, according to Savills, with pricing continuing to climb into 2026. A unit at the development changed hands at S$3,897 per square foot in January, marking one of the highest recorded strata office prices at the property.

Earlier transactions had helped establish Suntec City as a benchmark for Singapore’s strata office segment, including record-setting deals involving overseas buyers. In October 2022, a mainland Chinese investor paid a then-record S$3,350 per square foot for an office floor at the development, and a Thai buyer later that month acquired the topmost 44th floor at Tower 1 for an even higher S$3,850 per square foot.

The 27th floor of Tower 1 included in the current offering has itself been the subject of prior sale efforts, having been marketed in earlier campaigns at prices above S$40 million as the owners tested the market amid rising valuations.

Strata units at the complex have also drawn interest from both owner-occupiers and investors seeking stable income, with some buyers acquiring space for corporate use and others targeting rental yields.

A March marketing exercise by Cushman & Wakefield for a pair of adjoining units on Level 16 of Tower 1 highlighted this dual appeal, with the space pitched to both occupiers and investors at projected returns of up to 4 percent. That S$22 million offering also underscored the limited pipeline of strata office supply, following Urban Redevelopment Authority restrictions introduced in 2022 that have curbed new subdivisions in key central areas.

Prime Rents Rise

Singapore’s broader office market has remained resilient, with prime rents in the Raffles Place/Marina Bay precinct rising in the first quarter of 2026 amid continued flight-to-quality demand, according to Knight Frank.

Grade A office rents in the precinct averaged S$11.57 per square foot per month during the quarter, up 0.7 percent from the previous three months, while occupancy rose to 97 percent, reflecting tight supply conditions.

The market has been supported by companies upgrading into higher-quality space and by Singapore’s status as a regional safe haven, even as geopolitical tensions weigh on expansion plans, the consultancy said.

With limited new supply in the near term and investors continuing to target income-generating assets, the latest Suntec offering is set to test pricing resilience in one of Singapore’s most closely watched strata office markets.

The sale campaign comes as ownership dynamics around Suntec City continue to shift, following Hongkong Land’s S$422 million acquisition of a 10.8 percent stake in Suntec REIT and Gordon Tang’s takeover of the trust’s manager through his Tang Organization.