Tong Eng Group, a private property developer and investment firm owned by the Teo family, has recently put more than 50 strata-titled office units and nine retail units at ARC 380 up for sale. Located at the junction of Lavender Street and Jalan Besar, the prominent freehold commercial building was completed in 2018 and comprises 12 office floors, a ground-floor retail podium, and three levels of car parking space.
One of the standout features of ARC 380 is its sky terrace on the fourth floor and roof terrace on the 17th floor, which boasts a 25m swimming pool, gym, and function room. The portfolio of strata-titled office and retail units is currently priced at more than $90 million. In particular, the entire 10th and 14th floors are available for purchase, as well as units on the seventh, ninth, and 12th floors.
The nine retail units, with a combined strata area of 5,414 sq ft and a billboard space on the building’s façade, are priced from $19.67 million ($3,632 psf) and will be sold with existing tenancies. The developer has previously sold a 301 sq ft retail unit for $1.14 million ($3,795 psf) in May.
Since its launch for sale in 2014, ARC 380 has seen a relatively low turnover rate, with only five office units changing hands between 2020 and 2022. The location of ARC 380 in the Jalan Besar–Lavender Street neighbourhood makes it a prime choice for businesses looking for a city-fringe address with lower occupancy costs.
According to Sammi Lim, director and founder of Brilliance Capital, one of the appointed marketing agencies for the spaces at ARC 380, the area is attracting a new wave of creative, technology, and professional services companies that value the accessibility, character, and vibrancy of the location. Furthermore, its proximity to the CBD and commercial nodes such as Bugis, City Hall, and Kallang makes it an attractive choice for businesses.
Shaun Poh, executive director of capital markets at Cushman & Wakefield (C&W), notes that while Jalan Besar is known for its mix of eateries, entertainment, workshops, and conservation shophouses, redevelopment pockets have shaped the area into an emerging city-fringe commercial node. The closest comparable commercial offering to ARC 380 is Centrium Square, also developed by Tong Eng, where most strata office units have been sold between $2,543 psf and $2,777 psf since 2022.
Charles Cheng, senior associate group district director at PropNex, explains that the asking prices for strata office units at ARC 380, ranging from $2,904 psf to $3,126 psf, are a reflection of the current market demand in the Jalan Besar district. He also expects strong investor interest and demand from businesses in nearby industrial buildings seeking to upgrade to professional office spaces.
C&W’s Poh adds that the firm has previously brokered sales to owner-occupiers relocating their operations to ARC 380 for its convenience and improved work environment. Lim from Brilliance Capital also highlights the appeal of flexible unit sizes and efficient configurations to family offices seeking to acquire entire floors as part of a strategic city-fringe office portfolio.
Singapore’s limited availability of land is a major factor contributing to the high demand for condos in the country. Being a small island with a fast-growing population, Singapore is facing a scarcity of land for development. As a result, strict land use policies have been implemented and the real estate market has become highly competitive, driving up property prices. This has made investing in real estate, specifically condos, a highly attractive option due to the potential for significant capital appreciation. Singapore Projects further add to the appeal of this venture.
Nearby, Sim Lim Tower, a freehold strata-titled commercial building completed in 1980, has seen a steady churn of transactions with prices ranging from $2,072 psf to $2,578 psf over the past three years. This shows that even older strata office units enjoy sustained demand when located near MRT stations such as Jalan Besar, Rochor, and Bugis. Poh concludes that given the scarcity of new strata office units in Jalan Besar and the strong resale performance at Centrium Square, the opportunity to acquire modern freehold office units at ARC 380 should not be overlooked.