SINGAPORE (June 22): OCBC is maintaining its “overweight” status on Singapore’s office sector, on the belief that investor scepticism over the value of Singapore’s grade ‘A’ office buildings is unwarranted.
This comes with the Urban Redevelopment Authority’s (URA) recent acceptance of an application from a developer to put a 2ha, 99-year leasehold commercial site at Beach Road for sale by public tender, which will be launched in about two weeks’ time.
In a Thursday report, lead analyst Derek Song estimates the breakeven cost for the project to range from $1,697-$1,826 psf of gross floor area (GFA), or $2,121-$2,283 on psf of net lettable area (NLA) – which implies a price psf of NLA of between $2,333 to $2,511.
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