The Singapore strata commercial market saw a notable shift in H2 2025, with strata retail outperforming strata office in sales activity, according to Knight Frank Singapore. The strata retail sector recorded 181 transactions, a 58.8% increase from the first half of the year, totalling S$448m in sales. This surge reflects a growing investor interest in retail properties as a hedge against rental cycles amidst broader sector challenges.
The strata office market, however, experienced a slowdown. Despite achieving a record number of 354 transactions in 2025, the total sales value fell 5.2% year-on-year to S$1.1b. The second half of the year saw a significant 51.7% decline in sales value to S$355.8m compared to H1 2025. The average unit price also dropped 20.7% to S$2,224 per square foot.
Mary Sai, Executive Director of Capital Markets at Knight Frank Singapore, noted that demand for strata offices remained concentrated in the Central Business District and city-fringe locations with strong transport connectivity. The Downtown Core Planning Area led with 40 units sold, valued at S$123m.
In the strata retail sector, eight transactions exceeded S$10m, including a notable S$39.2m deal in GB Building. Freehold strata retail transactions reached a high since 2016, with 109 deals amounting to S$285m.
Looking ahead, Knight Frank projects that anticipated interest rate cuts could bolster buying sentiment into 2026, with strata retail transaction values expected to range between S$500m and S$700m.
