Tag Archives: Singapore Real Estate

Singapore industrial property sector forecast to outperform all others

Posted on 25 May 2011 | Comments Off on Singapore industrial property sector forecast to outperform all others

Singapore’s industrial property sector looks to outperform residential, retail, and office property over the next few years, after a dynamite 2010 and first quarter of 2011.

Donald Han, vice-chairman of property consultants at Cushman and Wakefield, said capital values for industrial properties rose as much as 22 per cent last year.

“I think probably we’re going to see another 15-per-cent price increase this year. As long as the economy continues to do well and our manufacturing numbers continue to expand, I think we’ll have another good 24 months of steady rental increase plus capital value enhancement as well,” said Han.

Demand is also coming from investors and speculators moving into the industrial space from the residential market due to the Government’s measures to cool the market for the latter, Han added.

Another attraction is the affordability of industrial properties compared to residential ones. Han said: “You can buy very affordable units for about 1,000 to 1,500 square feet at prices of about S$300 to S$350 per square foot (US$240-280), which translates to less than S$0.5 million (US$400,000). If you look at the residential projects, for S$0.5 million you really can’t buy much, not even shoebox units.”

The Urban Redevelopment Authority yesterday launched the tender for an industrial site at Tuas View Square, Today newspaper reported. Available for sale through the Reserve List system since November, the tender was triggered when a developer committed to bid no less than S$4.9 million (US$3.9 million) for the land parcel on a 45-year lease.

The 0.4 hectare site has a gross plot ratio of 0.9 and is zoned for Business 2 development, meaning it can be developed for various facilities such as light industry, general industry, warehousing, utility or telecommunication uses. The tender closes on June 29.

Meanwhile, JTC Corp has awarded the tender for a business park site at Biopolis to Ascendas Venture, a wholly-owned subsidiary of Ascendas Land Singapore. The company submitted the highest bid of S$87.2 million (US$69.8 million) for the site, part of the fifth phase of Biopolis, which is expected to be completed in 2013.

Source : PRSEA – 25 May 2011

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Singapore home sales rise after fouth months of decline

Posted on 15 Apr 2011 | Comments Off on Singapore home sales rise after fouth months of decline

Sales of private residential properties in Singapore increased during March, the first rise after four consecutive months of decline.

The Urban Redevelopment Authority (URA) reported sales of 1,386 private homes were sold last month, up 25 per cent month-on-month from the 1,105 units sold during February. Including Executive Condominiums total sales were recorded at 1,543 units.

The suburban region recorded most sales at 631 units sold,while the Central region saw the least at 263 units sold. H2O Residences in Sengkang was the most popular development in March, with 255 units, and the highest price was achieved by a unit at Scotts Square in the city region which sold for S$4,334 (US$3,480) per sq ft.

The cheapest price recorded by the URA was for an Executive Condo units at The Canopy which sold for S$530 (US$425) per sq ft.

Joseph Tan, Executive Director of Residential at CB Richard Ellis, said: “New home sales in March numbered 1,386 units, signalling a pick-up in activity compared to the 1,105 and 1,210 units sold in February and January respectively.

“In total, 3,701 new homes were sold in the first quarter of 2011. However, this is 12 per cent lower than the 4,241 new homes sold in the fourth quarter of 2010. The lower volume could be attributed to speculators being weeded out by the cooling measures. The current volume represents genuine demand from occupiers and investors.”

Tay Huey Ying, Consultant of Research and Advisory at Colliers, noted that developers are expected to continue pushing out their projects in April 2011 to ride on the current buying momentum. She said it is also to their advantage to push out their projects now, rather than later – in view of the global uncertainties surrounding the political unrests in the Middle East/North Africa and the crisis in Japan, as well as risks of further Government cooling measures.

“While buyers may become more selective and price sensitive, affordably-priced projects with good attributes are still expected to enjoy healthy sales, it said. As such, both developers’ launch and sales volume are expected to stay at above the 1,000-unit level in April 2011 and could possibly challenge March 2011’s level,” said Ms. Tay.

Source : Property Report – 15 Apr 2011

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