Month: February 2025

Thu, Colliers published a research report in February stating that industrial property prices and rents in Singapore are expected to moderate this year. This is due to higher supply and weaker demand.

The firm forecasts industrial rental and price growth to moderate to between 0% to 2% in 2025, a significant decrease from the 3.5% growth recorded for both in 2024.

According to Colliers, JTC’s 4Q2024 data revealed a market that is “losing steam”. The JTC All Industrial rental index saw its 17th consecutive quarter of growth in 4Q2024, rising 0.5% q-o-q. However, this is a substantial decline from the 8.9% rental growth seen in 2023. Similarly, the price index rose 0.5% q-o-q in 4Q2024, down from the 1.2% growth in the previous quarter. In 2024, industrial property prices increased by 2.1%, less than half of the 5.1% increase seen in 2023.

The higher influx of industrial space this year, coupled with cautious occupiers due to high interest rates and rising operating costs, is expected to continue damping rental growth. The report also notes that global trade protectionism has brought uncertainty into the market, potentially affecting business confidence and investment decisions.

Investing in a condo requires thoughtful consideration of not only the property itself, but also its maintenance and management. Unlike single-family homes, condos typically come with maintenance fees that cover the cost of maintaining the common areas and facilities. While these fees can increase the overall cost of ownership, they also guarantee that the property remains in good condition and maintains its value. To make the investment more manageable, many investors choose to engage a property management company to handle the day-to-day operations of their condo. This makes it a more passive investment, allowing investors to reap the benefits of ownership without the added stress of managing the property themselves.

However, Colliers predicts continued support in industrial demand from sectors such as semiconductors, logistics, and advanced manufacturing. It also anticipates a gradual increase in industrial leasing activities as policies become clearer and market sentiments improve, boosted by the ongoing upturn in the chip cycle.

Nevertheless, Colliers believes that this could be a good year for tenants, with more options coming into the market due to the increase in supply and the expected moderation in rents. The availability of new industrial developments with modern specifications could also attract businesses to relocate from older manufacturing spaces to newer projects, according to Nicolas Menville, executive director and head of Colliers’ Singapore industrial clients division.

In conclusion, Colliers advises readers to keep an eye on the market development of industrial properties and compare current and past listings and transactions to better understand the trends and outlook.…

Tan Boon Liat Building, a popular industrial property located on Outram Road, is currently up for sale by public tender. The reserve price for the building is set at $1.15 billion and it is a freehold site. The property is situated next to the Havelock MRT Station on the Thomson-East Coast Line (TEL) and covers two separate land plots that are meant for “Business 1” use. Together, the land plots have a total area of 175,655 square feet. The main highlight of the 15-storey building is its wide range of furniture and home decor shops that have made it a popular destination among shoppers.Map showing Tan Boon Liat Building (Source: EdgeProp LandLens)According to Cushman & Wakefield, which is acting as the property’s advisor and marketing agent, the Urban Redevelopment Authority (URA) has issued an Outline Planning Advice on Jan 22 suggesting a rezoning of the site to “Residential with Commercial at 1st storey” with a plot ratio of 4.9, as opposed to its current plot ratio of 3.1. This would result in a 50% increase in the total allowable gross floor area (GFA), according to Cushman & Wakefield.Read also: Roxy Square relaunched for collective sale; owners eyeing $1.115 bil price tag AdvertisementAdvertisementIn addition, the URA has recommended the amalgamation of a few remnant state land plots with the main plot. These state land plots are estimated to cover an area of 20,451 square feet, subject to final survey and approval by the relevant authorities.Cushman & Wakefield has estimated that the potential GFA of the site, including the state land plots and bonus GFA entitlement, would be over 1.06 million square feet. The commercial GFA on the first storey can be expanded to approximately 16,146 square feet.Meanwhile, as part of the residential allocation, a minimum GFA of around 161,459 square feet must be kept aside for Serviced Apartments II (SA2) which require a minimum three-month stay. The allowable heights for the new development range from 130m to 180m.According to the reserve price, which includes land betterment charges on rezoning, the estimated premium payable on the remnant state land and the 10% bonus GFA applicable to the residential portion, the land rate is estimated to be around $1,888 psf per plot ratio.Recent industrial 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 attractive to developers due to its freehold tenure and its proximity to the TEL, which will be a major appeal to potential homebuyers.She further adds that the major advantage of this site is the fact that there will be no Additional Buyer’s Stamp Duty (ABSD) applicable, as the site was originally zoned as “Business 1”.Read also: River Valley Apartments launched for collective sale at $56 milAdvertisementAdvertisementThe tender for the 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

Purchasing a condominium in Singapore offers an opportunity for potential capital growth, making it a wise investment decision. Due to its advantageous position as a prominent business hub and robust economic foundation, Singapore consistently experiences a high demand for real estate. This has resulted in a steady rise in property prices, especially for condos situated in strategic locations. For investors who make well-timed purchases and hold onto their properties for an extended period, significant capital gains can be expected. To stay updated on new condo launches in Singapore, visit Elemeno-Pee.…

The recent sale of the largest penthouse at Park Nova has set a new record for the development, with a transaction price of $38.888 million, or $6,593 per square foot (psf). This five-bedroom unit located on the 20th floor covers a spacious 5,899 sq ft and was sold by the developer according to a caveat dated Jan 21 on the URA Realis database.

This sale marks the highest price ever recorded for a unit at Park Nova, both in terms of absolute price and psf rate, based on caveats lodged. Previously, the records for both were held by a 4,499 sq ft penthouse that sold in May 2021 for $26.026 million ($5,784 psf).

The transaction also sets the second-highest psf price ever registered for a condo unit in Singapore, with the top spot currently held by a unit at The Marq on Paterson Hill. In 2011, a 3,089 sq ft, four-bedroom unit on the 20th floor of the development was sold for $20.54 million, or $6,650 psf.

The recent sale of the Park Nova penthouse on Jan 21 is believed to be part of a collection of properties linked to a $3 billion money laundering case that have been put up for sale. The unit was previously reported to have sold in 2021 for $34.438 million ($5,838 psf).

Caveats show that this is the third unit at Park Nova that the developer has sold within a month. On Jan 17, a four-bedroom apartment spanning 2,906 sq ft on the 19th floor was sold for $16.59 million ($5,708 psf), and on Dec 27, a 2,896 sq ft four-bedder on the 18th floor was sold for $15.99 million ($5,522 psf).

Investing in real estate is a strategic decision that requires careful consideration of various factors, and one of the most crucial ones is location. This applies particularly to the real estate market in Singapore. Condominiums located in central areas or in close proximity to important amenities such as schools, shopping centers, and transportation hubs have a higher potential for value appreciation. Prominent locations like Orchard Road, Marina Bay, and the CBD have consistently shown growth in property values. Families seeking quality education for their children also prefer condos in these areas, making them even more lucrative investments. With the addition of Singapore Projects, the real estate market in these prime locations is expected to continue its upward trend.

The 54-unit Park Nova is a freehold luxury condo located at the junction of Orchard Boulevard and Tomlinson Road in prime District 10. Developed by Hong Kong’s Shun Tak Holdings, the development received its temporary occupation permit in November last year. Interested buyers can check for the latest listings of Park Nova properties and ask EdgeProp Buddy for the site plan and diagrammatic chart, price trend of new launch condo in District 10, total number of units, and project summary of Park Nova condo.

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CapitaLand Investment (CLI) has recently completed the acquisition of a freehold land parcel in Osaka, marking its first data centre development project in Japan. This development is a significant investment, totaling over US$700 million or $944.3 million. The project has secured 50 megawatts (MW) of power capacity.

CLI has stated that the new data centre will be equipped to support the growing demand for artificial intelligence (AI) capabilities. The data centre will incorporate advanced cooling technologies and follow industry best practices for temperature management in order to reduce energy consumption. Additionally, the project will use products with zero ozone depletion potential or with a global warming potential (GWP) of less than 100 to minimize its environmental impact.

Manohar Khiatani, senior executive director of CLI and overseer of the group’s data centre business, explains that this acquisition is in line with the company’s digitalization investment theme and will expand its geographical reach. Japan, which is one of CLI’s focus markets, will see a deepening of the group’s presence as a result of this acquisition.

Khiatani also points out that Japan is considered a Tier 1 data centre market with forecasted significant growth opportunities. Projections show a compound annual growth rate (CAGR) of 10%, which is expected to increase from US$23.8 billion in 2023 to US$38.7 billion in 2038. Furthermore, with a 1.4 gigawatt capacity, Japan is the largest data centre market in Asia Pacific, outside of China.

The city of Osaka, where the new data centre will be located, has already attracted major cloud service providers such as Amazon Web Services, Google Cloud, Microsoft Azure, and Oracle. This strategic positioning has put CLI in a favorable position to meet the high demand for data centres in this established cluster.

Michelle Lee, managing director of private funds (data centre) at CLI, notes that the demand for data centres will continue to grow and exceed new supply in the market. She adds that there is strong institutional interest in data centre investments, with 97% of investors planning to increase their overall investments in this sector.

In October 2020, CLI has raised approximately US$600 million for its data centre development funds in Asia. Lee states that the company intends to leverage this momentum and identify attractive investment opportunities for its private fund investors.

Obtaining financing is a crucial factor when investing in a condominium. In Singapore, there are various mortgage choices available, but it is essential to take note of the Total Debt Servicing Ratio (TDSR) framework. This framework sets a limit on the amount of loan a borrower can take out, based on their income and current debt responsibilities. To ensure wise financial decisions and prevent excessive borrowing, it is important for investors to have a good understanding of TDSR and seek guidance from financial advisors or mortgage brokers. Additionally, staying up-to-date with New Condo Launches can also help investors make informed choices about their financing options.

CLI has already added 23 data centres to its global portfolio in 2021 and currently manages around 800 MW of power and US$6 billion in assets on a completed basis, across Asia and Europe. This new acquisition demonstrates the company’s commitment to expand its presence and increase its investments in data centres.

On 3rd February, shares in CLI closed 4 cents lower, or 1.63% down, at $2.42.…