The family of the late tycoon SP Tao is selling its space on the top two levels of the 29-storey SGX Centre 2 in Shenton Way for a total of S$39.5 million.

This works out to about S$2,629 per square foot (psf) for the total strata area of about 15,026 square feet. SGX Centre – comprising a two-tower 29-storey office building and podium – is on a site with 99-year leasehold tenure from November 1995, leaving a balance of about 69.5 years.

The project, which is home to the Singapore Exchange, among other tenants, was developed on the combined site of the former 22-storey Shing Kwan House and five-storey ICB (Industrial & Commercial Bank) Building. SGX Centre was completed about 25 years ago.

The recent sale of the Tao family’s space involves two transactions at SGX Centre 2. The whole of level 29, nearly 10,215 sq ft, is changing hands at S$26.85 million. In addition, about 4,811 sq ft on part of level 28 has fetched S$12.65 million.

The two spaces are being sold to different Singapore-incorporated entities which have some common shareholders. The seller in both transactions is Shing Kwan (Pte) Ltd, owned by Tao’s family. He died in 2021 at the age of 104.

SP Tao, or Tao Shing Pee, used to own the penthouse and six car-parking spaces in Shing Kwan House, which he developed in 1973 through Shing Kwan Realty. In the same year, he became Singapore Land’s (SingLand) chairman and major shareholder.

In 1990, Tao lost a takeover battle for SingLand and eventually exited the group in early 1996.

In late 1997, prior to the development of the SGX Centre project, Tao agreed to transfer his penthouse and six car-parking spaces in Shing Kwan House to SingLand’s wholly owned subsidiary Shing Kwan Realty (now known as SL Realty). In exchange, he received the entire 29th storey and part of the 28th storey of SGX Centre 2.

SingLand owns the rest of the 28th floor as well as the bulk of SGX Centre 2, in addition to some space in SGX Centre 1.

SGX Centre 1 is mostly held by UOB Group.

On Apr 25, the Urban Redevelopment Authority released data showing that its price index of office space in Singapore’s central region dipped 0.2 per cent quarter on quarter in Q1 2025, after slipping 0.7 per cent in the fourth quarter of 2024. For the whole of 2024, the price index appreciated 1.8 per cent.

Savills Singapore noted recently that investment sales in the Singapore office market were lukewarm in the first quarter, which it attributed to a cocktail of factors. “These include aggressive asking prices by sellers, fewer-than-expected (Federal Reserve) rate cuts, limited availability of investible-grade properties, and economic uncertainties arising from trade disruptions caused by US President Trump’s tariff policies and ongoing geopolitical tensions,” Savills said.

The property consulting group has maintained its forecast for overall Grade A Central Business District office rents to remain flat in 2025. “As vacancy levels among most of the premium AAA-grade buildings are very low, they may still be able to eke out a 2 per cent year-on-year increase,” it added.