When considering an investment in a Singapore Condo, it is essential to assess its potential rental yield. Rental yield refers to the annual rental income as a percentage of the property’s purchase price. Various factors, such as location, property condition, and market demand, can greatly affect the rental yield of Singapore condos. In general, areas with high rental demand, such as those near business districts or educational institutions, typically offer more favorable rental yields. To gain a better understanding of the potential rental yield for a specific Singapore Condo, it is recommended to conduct thorough market research and seek guidance from reputable real estate agents.
According to the exclusive marketing agent JLL, the Ching Shine Industrial Building has been put up for collective sale at a minimum price of $113 million. The building, which is freehold, is made up of 52 strata units and has a prime location with a 100m frontage along Shaw Road. It sits on a total land area of 49,308 sq ft and has a gross floor area of approximately 137,341 sq ft.
Built in the early 1980s, the building falls under the “Business 1” zoning with a gross plot ratio of 2.5 as per the URA Master Plan 2019. JLL has stated that over 80% of the owners have agreed to the collective sale at the minimum price of $113 million, which translates to a unit land rate of approximately $823 psf per plot ratio based on the current gross plot ratio of 2.79.
In accordance with URA’s approval, the site has the potential to be converted into a food factory, according to JLL. The National Environment Agency (NEA) has confirmed that the site meets the necessary buffer requirements for redevelopment into a multi-user factory, and the Singapore Food Agency has informed URA of their in-principle non-objection to the proposed food factory.
On the other hand, JLL also believes that the freehold asset could be an attractive investment opportunity for long-term growth for family offices, or for owner-occupiers looking to establish a corporate presence. Nicholas Ng, senior director of capital markets at JLL Singapore, is optimistic that the site will also appeal to developers due to the absence of additional buyer’s stamp duty, which can potentially impact project timelines.
The building is conveniently accessible via major expressways such as the PIE, CTE, and KPE, and is within walking distance from the Tai Seng MRT Station on the Circle Line. It is situated in the Tai Seng Industrial estate, which is home to many food factories such as Breadtalk IHQ, Sakae Building, and Food Empire Building. The area is also surrounded by amenities such as Grantral Mall @ Macpherson and 18 Tai Seng.
In November 2023, Noel Building, a freehold Business 1 industrial building located at 50 Playfair Road, was sold en bloc for $81.18 million, which is 17% higher than its guide price of $70 million. Ng believes that this transaction demonstrates the strong demand for such assets in the area. He expects a similarly competitive response for Ching Shine Industrial Building.
The tender for the Ching Shine Industrial Building will close on April 3 at 3pm.