Why Strata Commercial Units in the CBD Are Becoming Harder to Find

A strata commercial property is essentially an individually titled unit within a larger development.

Instead of buying an entire office building or commercial block, an investor or business owner can own a specific unit.

This can make commercial property ownership accessible to a much wider group of buyers.

For example, a business might purchase its own office.

An investor might purchase a retail unit and lease it out.

A family business might acquire a commercial unit as a long-term asset.

The important point is that the unit itself is separately owned.

But there is a catch.

Creating this kind of fragmented ownership is not something that can simply be replicated across every new CBD development.

This is where things get interesting.

URA's current guidelines state that strata subdivision of the commercial component may not be allowed along specified prominent CBD corridors, including Shenton Way, Robinson Road, Anson Road, Raffles Quay, areas facing Raffles Place Park and along the Singapore River.

The policy was introduced in 2022.

URA explained that fragmented ownership can create challenges for maintaining and upgrading buildings and for managing tenant mix.

The intention is therefore to limit the number of strata lots in prominent areas and avoid excessive fragmentation of ownership.

This has an important consequence for investors.

Existing strata stock can still be bought and sold.

But creating a large amount of new individually subdivided commercial stock in these restricted locations is much more difficult.

Think about it this way.

If you have an asset that can easily be reproduced, additional supply can continue coming into the market.

But if the ability to create similar assets becomes restricted, existing stock becomes a finite pool.

That doesn't automatically mean every existing unit becomes more valuable.

A poorly located unit can still be poorly located.

An unattractive building can still be unattractive.

A short lease can still be a short lease.

A weak tenant can still create income risk.

But scarcity becomes one of the characteristics worth considering.

And this is particularly relevant when you're looking at established CBD locations where new strata supply is constrained.

Scarcity doesn't mean there is no market.

There are still transactions taking place.

In the first half of 2026, Knight Frank recorded 136 strata office transactions across Singapore, with 49 of those transactions located in the Downtown Core Planning Area, representing $187.5 million in transaction value.

There are also sizeable examples.

In 2026, a portfolio of 14 strata offices at High Street Centre was marketed for sale, comprising an entire floor of 10 units plus four units on another floor.

And in March 2026, CBRE marketed a 6,415 sq ft freehold strata office at Southpoint, describing this type of opportunity as increasingly rare in the CBD.

So the story isn't:

“There are no strata units.”

The more accurate observation is:

“There is an established market for existing strata units, but future supply in key CBD areas is increasingly constrained.”

This is where I think investors need to be careful.

It can be tempting to hear:

“CBD strata units are rare.”

And immediately conclude:

“Therefore, any CBD strata unit is a good investment.”

That's not how I would approach it.

Scarcity is only one part of the equation.

You still need to consider:

• Purchase price
• Rental yield
• Tenant quality
• Lease duration
• Remaining tenure
• Building quality
• Accessibility
• Unit position
• Approved use
• Rental demand
• Future competition
• Resale market
• Likely buyer pool

A rare asset can still be overpriced.

And a scarce property does not automatically have strong rental demand.

Scarcity creates a characteristic. It doesn't remove the need for due diligence.

Not all CBD locations are the same.

A strata office near a major MRT interchange is different from one that requires a longer walk.

A street-facing retail unit is different from an upper-floor office.

A unit with strong visibility is different from one hidden inside a building.

A freehold property is different from a leasehold property.

And a building with an established commercial ecosystem can behave differently from a building struggling with vacancy or outdated facilities.

So when someone says:

“It's a CBD property.”

My next question would be:

“Which part of the CBD, which building and which unit?”

The word CBD alone doesn't tell you enough.

This brings us back to something we discussed throughout Series 1:

Exit.

If you buy an existing strata commercial unit today, you aren't just buying it for yourself.

At some point, you may want to sell it.

Your future buyer could be:

• An investor
• An owner-occupier
• A business looking for its own premises
• A family office or private investor
• Another commercial property investor

The more clearly you understand your potential future buyer, the easier it becomes to understand what makes your property desirable.

This is why I would not look at scarcity in isolation.

I would ask:

“Is this a scarce asset that people actually want?”

That is a much more useful question.