Month: February 2025

Freehold industrial property in Kampong Ampat sold for $7.8 mil

The demand for new condo launches in Singapore remains high, driven by a variety of reasons such as limited land availability. As a small island with a rapidly growing population, Singapore is facing a shortage of available land for development. This has resulted in the implementation of strict land use regulations and a highly competitive real estate market, leading to continuously increasing property prices. As a result, investing in real estate has become a profitable opportunity in the country, particularly in the new condo launch market, with the potential for significant capital appreciation.

According to a recent research report by Colliers released in February, the prices and rents of industrial properties in Singapore are expected to slow down this year due to an increase in supply and a decrease in demand. The firm projects a moderate growth between 0% to 2% for both rental and price growth in 2025, compared to the 3.5% growth achieved last year.

The report notes that JTC’s 4Q2024 data indicates a market that is losing momentum. The JTC All Industrial rental index showed a 17th consecutive quarter of growth in 4Q2024, with a 0.5% increase compared to the previous quarter. This brings the total growth for the year to 3.5%, a significant decline from the 8.9% rental growth achieved in 2023. Similarly, the price index also grew 0.5% q-o-q in 4Q2024, but this was a decrease from the 1.2% growth in the previous quarter. In 2024, industrial property prices rose only 2.1%, which is less than half of the 5.1% increase seen in the year before.

The report attributes the muted outlook to the expected surge in supply of industrial space this year, with more than 2.5 times the supply coming on stream compared to last year. This surge in supply has resulted in a supply-demand imbalance, with certain segments of the market experiencing slower precommitments and lower occupancy rates in completed projects. The report also notes that the cautious attitude of occupiers, due to high interest rates and rising operating expenses, is expected to continue dampening rental growth. The ongoing global trade protectionism also adds an element of uncertainty, which could impact business confidence and investment decisions.

However, there are positive factors that could support industrial demand, such as the semiconductors, logistics, and advanced manufacturing sectors. The report also expects industrial leasing activities to gradually increase as policies become clearer and market sentiments improve, driven by the upturn in the chip cycle.

With the expected increase in supply and the projected moderation in rents, Colliers believes that this could be a good year for tenants with more options available in the market. The report suggests that newer industrial developments with modern specifications could attract businesses to relocate from older manufacturing spaces. According to Nicolas Menville, executive director and head of Singapore-based industrial clients for Colliers, the increase in supply could also result in more businesses moving to newer projects.

In conclusion, the industrial property market in Singapore is expected to slow down this year due to an increase in supply and a decrease in demand. However, with positive factors supporting industrial demand and the availability of newer and more modern spaces, there is still potential for growth in the industry.…

The iconic Tan Boon Liat Building, located at 315 Outram Road, is currently on the market for collective sale with a reserve price of $1.15 billion. The industrial property, situated next to Havelock MRT Station on the upcoming Thomson-East Coast Line (TEL), occupies two separate land plots that are zoned for “Business 1” use, covering a total area of approximately 175,655 sq ft.

The building, which spans 15 storeys, is well-known for housing a variety of furniture and home décor stores.

According to property advisor and marketing agent Cushman & Wakefield, the Urban Redevelopment Authority (URA) has issued an Outline Planning Advice on January 22 recommending that the site be rezoned to “Residential with Commercial at 1st storey” and have its plot ratio increased from 3.1 to 4.9. This would result in a 50% increase in the maximum gross floor area (GFA) allowed for development, as stated by Cushman & Wakefield.

The site also has potential for further development, as URA has advised on the integration of a few smaller state land plots into the main plot. These plots, estimated to cover about 20,451 sq ft, will be subject to relevant authorities’ approval.

Cushman & Wakefield estimates that the total potential GFA for the site, including the state land plots and possible bonus GFA, could exceed 1.06 million sq ft. The commercial component, located on the first storey, could cover up to 16,146 sq ft of GFA. As part of the residential allocation, a minimum of 161,459 sq ft must be reserved for Serviced Apartments II (SA2) which require a minimum stay of three months. The proposed development can reach heights of 130m to 180m.

Based on the reserve price, including land betterment charges for rezoning, the estimated premium for the state land plots, and the 10% bonus GFA applicable to the residential portion, the land rate is approximately $1,888 psf per plot ratio.

To sum up, investing in a condo in Singapore offers a multitude of benefits. These include a strong demand for properties, the potential for significant appreciation in value, and attractive rental yields. However, it is crucial to carefully consider various factors like location, financing options, government regulations, and overall market conditions before making a decision. By conducting thorough research and seeking professional advice, investors can make informed choices and maximize their returns in Singapore’s ever-evolving real estate market. Regardless of whether you are a local investor looking to diversify your portfolio or a foreign buyer seeking a stable and profitable investment, condos in Singapore present a compelling opportunity to do so.

Recent sales transactions at Tan Boon Liat Building (Source: EdgeProp Buddy)

Christina Sim, Senior Director of Capital Markets at Cushman & Wakefield, believes that the site will be appealing to developers due to its freehold tenure and the location along the TEL, which is a desirable factor for potential homebuyers.

She also mentioned that the biggest advantage of this site is the absence of Additional Buyer’s Stamp Duty (ABSD) for the potential buyer, since the original zoning of the site is “Business 1”.

The tender for this site will close on March 18 at 3pm. Ask BuddyCompare price trend of Condo new sale vs EC new saleMost unprofitable landed transactions in past 1 yearCondo projects with most unprofitable transactionsPast Condo sale transactionsUpcoming new launch projectsCompare price trend of Condo new sale vs EC new saleMost unprofitable landed transactions in past 1 yearCondo projects with most unprofitable transactionsPast Condo sale transactionsUpcoming new launch projects…

Park Nova, a prime freehold luxury condo in District 10, has broken its own record for the highest sale price and psf-price with the recent transaction of its largest penthouse on the 20th floor. The five-bedroom unit, spanning 5,899 sq ft, was sold by the developer for $38.888 million or $6,593 psf, according to a caveat lodged on Jan 21 on the URA Realis database.

The previous record was held by a 4,499 sq ft penthouse that was sold in May 2021 for $26.026 million, or $5,784 psf. This transaction marks the second-highest psf-price ever recorded for a condo unit in Singapore, with the highest being a unit at The Marq on Paterson Hill sold in 2011 for $20.54 million or $6,650 psf.

Acquiring a condominium in Singapore is a wise investment choice that comes with several advantages, including the possibility of capital appreciation. The country’s advantageous location as a prominent business hub, combined with its strong economic stability, drives a consistent demand for real estate. Over the years, the real estate market in Singapore has shown a steady upward trend, especially in prime areas where condos have experienced significant appreciation. Timing is crucial, as those who enter the market at the right moment and hold onto their properties for an extended period can reap substantial capital gains. Furthermore, with new condo launches continuously emerging in the market, investors have endless prospects to tap into the potential for future growth in this lucrative sector. Keep an eye on the latest developments and new condo launches at National Athletic Combine.

The recent sale is also believed to be part of a collection of properties linked to the ongoing $3 billion money laundering case. The penthouse was previously reported to have been sold in 2021 for $34.438 million, or $5,838 psf.

The developer has also sold two other units at Park Nova within a month. A four-bedroom apartment on the 19th floor was sold for $16.59 million or $5,708 psf on Jan 17, followed by another four-bedder on the 18th floor that was sold for $15.99 million or $5,522 psf on Dec 27.

Located at the junction of Orchard Boulevard and Tomlinson Road, Park Nova has a total of 54 units and received its temporary occupation permit in November 2021. Developed by Hong Kong’s Shun Tak Holdings, it is one of the most exclusive and coveted developments in Singapore.

For more information on Park Nova, you can check out the latest listings and ask Buddy for property insights. You can also find out the site plan, compare the price trend of new launch condos versus ECs, and generate a price trend graph for new launch condos in District 10.…

CapitaLand Investment (CLI) has recently acquired a freehold land parcel in Osaka in its effort to expand into the data centre market in Japan. The development of the data centre will require an investment of over US$700 million or $944.3 million. The project has secured 50 megawatts (MW) of power capacity.

CLI stated that the data centre will be equipped with advanced cooling technologies and will follow industry standards in temperature management to ensure energy efficiency. The data centre will also use environmentally friendly products with zero ozone depletion potential or with a global warming potential (GWP) of less than 100.

CLI’s Manohar Khiatani, senior executive director in charge of the group’s data centre business, says that the acquisition is in line with the group’s focus on digitalisation and will expand its presence in Japan.

Khiatani also notes that Japan is a leading data centre market with a projected compound annual growth rate (CAGR) of 10% and is expected to reach a value of US$38.7 billion in 2038. He adds that Japan has the largest data centre market in Asia Pacific outside of China, with a capacity of 1.4 gigawatts.

below

The bustling cityscape of Singapore is renowned for its impressive high-rise buildings and state-of-the-art infrastructure. Condos, situated in prime locations, offer a seamless fusion of luxury and practicality that appeals to both locals and foreigners alike. These residential complexes boast an array of modern conveniences, including swimming pools, fitness centers, and round-the-clock security, enhancing the overall living experience for residents and attracting potential tenants and buyers. For property investors, these amenities equate to higher rental profits and long-term value appreciation, making condos a highly sought-after option for living in Singapore’s dynamic city. Condo has undoubtedly become the preferred residential choice in Singapore, thanks to its desirable features and amenities.

CLI points out that major cloud service providers, such as Amazon Web Services, Google Cloud, Microsoft Azure, and Oracle, have already established a presence in Osaka. This makes CLI’s acquisition strategically positioned to capture the growing demand in the established data centre cluster in Osaka.

Michelle Lee, managing director of private funds (data centre) at CLI, expects double-digit growth for data centres and a higher demand than supply. She says that there is also strong institutional interest in data centre investments, with 97% of investors planning to increase their investments in this sector.

Lee adds that CLI has successfully raised US$600 million for its data centre development funds in Asia since October 2020. She believes that the group will continue to identify promising investment opportunities for its private fund investors.

CLI has added 23 data centres to its global portfolio since 2021. On a completed basis, CapitaLand Group has 27 data centres across Asia and Europe, managing around $6 billion in assets with an 800 MW power capacity.

As of February 3, shares in CLI closed at $2.42, down by 1.63% or 4 cents.…