‘The best address in Singapore’: Why Malaysia’s IOI Properties is betting billions on the CBD

IOI Properties CEO Lee Yeow Seng is placing significant bets on Singapore's Central Business District (CBD) as the optimal location for real estate investments. Lee considers Marina Bay as the "best address" in Singapore for property ventures, citing its safety and prestige as key attractors for high-net-worth individuals. These individuals, in turn, fuel demand for prime offices, luxury homes, and high-end accommodations.

Lee's confidence in Singapore's CBD stems from the country's limited land supply and government control over its release, which provides investors with a sense of security. He notes that land for new Grade A office developments in the CBD has been scarce for approximately a decade. Regardless of the rise of flexible work and efforts to decentralize jobs, Lee maintains that professionals still value a prestigious downtown location.

Central Boulevard Towers, a property developed by IOI, is located in close proximity to multiple MRT stations and Marina Bay Sands. The high rents at this development – close to $18 per square foot – reflect the premium placed on CBD addresses. IOI has also successfully increased rents at Asia Square Tower 2.

Beyond office-focused investments, IOI is also expanding into mixed-use developments, which combine living, working, and leisure spaces. Marina View, for instance, features the W Residences Marina View, a 683-unit property that includes a W Hotel with 360 rooms. These properties offer convenience and amenities, appealing to affluent expatriates and a growing luxury market.

In the hotel sector, IOI owns or is developing several upscale properties, including the W hotel and JW Marriott at South Beach. The redevelopment of Shenton House, set to begin in 2027, will include around 200 hotel rooms. Lee believes Singapore remains underserved by ultra-luxury hotel brands, particularly as the city hosts numerous international events.