Kenny's Take
Two very different stories today, one consistent signal: capital isn't backing off Singapore property, it's just moving between asset classes. CapitaLand and IOI Properties circling One Raffles Place at close to $2.4 billion lines up exactly with what we already know about the CBD — Grade A vacancy at a multi-year low and almost nothing new coming until 2028, so institutional money is chasing a scarce, tightening asset. On the residential side, July's all-time-high condo rents tell landlord clients the same tightening story in a different market: fewer completions this year means less competition for your unit at renewal. If you're a landlord who's been hesitant to push a renewal increase, this is the data that backs you up. And if you're an investor weighing commercial exposure, treat a deal of this size as confirmation the CBD office window is still open, not a sign it's closing.
🏢 CapitaLand and IOI Properties Near $2.4B Deal for One Raffles Place
- CapitaLand Investment and IOI Properties Group are in advanced talks to form a joint venture and acquire One Raffles Place — the two office towers (62 and 38 storeys) plus retail podium, totalling around 65,309 sqm of lettable space — for close to $2.4 billion. Current owners OUE REIT (81.54% stake), UOL Group and Khattar Holdings are understood to be in exit talks, though terms are not yet finalised.
- United Overseas Bank, which holds the remaining 18.46% stake and occupies space in the complex as a tenant, is expected to retain its premises after any sale closes. The scale of this deal builds directly on the trend we flagged last week — CBD Grade A office vacancy at 5.6% in Q2 2026, the tightest since Q3 2022, with almost no new supply until 2028.
🏠 Condo Rents Hit an All-Time High in July
- Condo rents rose 1.6% month-on-month in July 2026 to a new all-time high, with the Outside Central Region posting the strongest segment gain at 2.2%. The year-on-year increase is a more moderate 2.5%, and URA's broader private residential rental index rose 0.7% in Q2 2026 and 1% across H1 2026 — so July's jump looks partly seasonal.
- The underlying driver looks structural rather than one-off: just 2,483 private residential units completed in H1 2026, against 7,996 for the whole of 2025. A thinner completions pipeline means fewer new units competing for tenants, which supports pricing power for landlords holding existing stock through the rest of the year.
🏦 Financing & Rates
- 3M SORA holds at 1.12%, 1M SORA at 1.08%–1.10% — no new print since 7 Aug; floating-rate home loans continue pricing around 1.9% p.a. all-in.
🔭 What I'm watching
- Whether the CapitaLand–IOI One Raffles Place talks convert to a signed deal, and at what final price against the $2.4 billion figure now circulating.
- Whether August's rental data confirms July's jump as a genuine trend shift or a one-month seasonal spike, once the full-month URA numbers land.