Month: February 2025

A recent study by Colliers predicts that the industrial property market in Singapore will experience a slow-down in 2025 due to an increase in supply and decrease in demand. According to the report, both rental and price growth are expected to moderate to between 0% to 2% this year, compared to the 3.5% growth recorded in 2024.

This subdued outlook is attributed to JTC’s 4Q2024 data, which showed signs of the market “losing steam”. The JTC All Industrial rental index recorded a 17th consecutive quarter of growth in 4Q2024, rising 0.5% quarter-on-quarter. However, this is a significant decline from the 8.9% rental growth recorded in 2023. The price index also grew 0.5% q-o-q in 4Q2024, but this is a decrease from the 1.2% growth in the previous quarter. In 2024, industrial property prices rose by 2.1%, which is less than half of the 5.1% increase seen in 2023.

Colliers highlights that the supply of industrial space is expected to increase this year, with over 2.5 times the supply of last year coming onto the market before tapering off in 2026. This oversupply has led to a market imbalance with lower precommitments and lower occupancy rates in completed projects.

The increase in supply, coupled with cautious behaviour among occupiers due to high interest rates and rising operating costs, is expected to continue to dampen rental growth. Colliers also notes that trade protectionism may bring uncertainty into the global market, affecting business confidence and investment decisions.

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However, the study also predicts that industrial demand will be supported by the semiconductor, logistics and advanced manufacturing sectors. It also expects leasing activity to gradually increase as the market improves and policies become clearer, driven by the ongoing upturn in the chip cycle.

In light of the projected moderation in rents, Colliers suggests this could be a good year for tenants as there will be more options on the market. The report states that newer industrial developments, equipped with modern specifications, could attract businesses to relocate from older, aging manufacturing spaces.

Nicolas Menville, Executive Director and Head of Singapore-based Industrial Clients for Colliers, suggests that this could be a good opportunity for businesses to find newer and more modern industrial spaces. The report also provides information on industrial real estate properties, recent transactions, and price trends. It also compares the price trend of commercial and industrial properties, giving a comprehensive overview of the current market.…

Tan Boon Liat Building, a prominent industrial property located at 315 Outram Road, has been put up for collective sale by public tender with a reserve price of $1.15 billion. This freehold site is situated next to the upcoming Havelock MRT Station on the Thomson-East Coast Line (TEL) and spans across two land plots earmarked for “Business 1” use, covering a combined area of approximately 175,655 square feet. Currently, the building stands at 15 storeys and is well-known for housing a variety of furniture and home decor stores.

According to Cushman & Wakefield, the property’s advisor and marketing agent, the Urban Redevelopment Authority (URA) has issued an Outline Planning Advice on Jan 22 recommending that the site be rezoned to “Residential with Commercial at 1st storey” with a plot ratio of 4.9, an increase from its current ratio of 3.1. This translates to a potential 50% increase in the total allowable gross floor area (GFA), as confirmed by Cushman & Wakefield.

Moreover, URA has also advised on the alienation of several state land plots which, upon being amalgamated with the main plot, will further boost the site’s potential GFA. The estimated size of these state land plots is around 20,451 square feet, subject to final survey and approval from relevant authorities.

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With the inclusion of these state land plots and any bonus GFA entitlement, Cushman & Wakefield estimates that the total potential GFA of the site is over 1.06 million square feet. The ground floor is capable of accommodating a commercial GFA of up to about 16,146 square feet. As part of the residential allocation, a minimum GFA of approximately 161,459 square feet must be set aside for Serviced Apartments II (SA2), which requires a minimum three-month stay. The proposed height for the new development ranges from 130m to 180m.

After factoring in the reserve price, land betterment charges for rezoning, estimated premium for the remnant state land, and a 10% bonus GFA applicable to the residential component, the estimated land rate stands at around $1,888 per square foot 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 this site will attract developers due to its freehold tenure and strategic location on the TEL, which will be a major draw for potential homebuyers.

She adds, “The biggest advantage, however, is the fact that there will be no Additional Buyer’s Stamp Duty (ABSD) imposed on the potential purchase as the original site is zoned ‘Business 1’.”

The 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…

The developer of Park Nova has achieved a new record price with the sale of its largest penthouse. The five-bedroom unit on the 20th floor, covering 5,899 square feet, was recently purchased for $38.888 million, or $6,593 per square foot, according to a caveat filed on Jan 21 with the URA Realis database.

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This transaction sets a new benchmark for both absolute price and psf-price at Park Nova, surpassing the previous records held by a 4,499 square feet penthouse that was sold in May 2021 for $26.026 million ($5,784 psf).

The sale also marks the second-highest psf-price ever recorded for a condo unit in Singapore, with the highest being held by a unit at The Marq on Paterson Hill which was sold for $20.54 million or $6,650 psf in 2011.

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

The unit is the third one at Park Nova sold by the developer within a month, according to caveats. On Jan 17, a four-bedroom apartment spanning 2,906 square feet on the 19th floor was sold for $16.59 million ($5,708 psf). A few days prior, on Dec 27, 2024, another four-bedroom unit of 2,896 square feet on the 18th floor was sold for $15.99 million ($5,522 psf).

Park Nova, a freehold luxury condo located at Orchard Boulevard and Tomlinson Road in prime District 10, comprises 54 units. Developed by Hong Kong’s Shun Tak Holdings, the development received its temporary occupation permit in November last year. Interested buyers can check out the latest listings for Park Nova properties on EdgeProp Buddy and ask for a site plan and diagrammatic chart, compare the price trend of condo new sale vs EC new sale, generate a price trend graph for new launch condo in District 10, and view the project summary for Park Nova condo.…

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Investing in condos in Singapore is a popular choice, but it comes with certain considerations, such as the government’s property cooling measures. The Singaporean government has implemented various measures throughout the years to prevent speculative buying and maintain a steady real estate market. These measures, including the Additional Buyer’s Stamp Duty (ABSD), involve higher taxes for foreign buyers and those purchasing multiple properties. While this may affect the short-term profitability of condo investments, it ultimately contributes to the long-term stability of the market, making it a safer environment for investors. Additionally, staying updated on new condo launches can provide valuable information for those interested in condo investment in Singapore.

CapitaLand Investment (CLI) has recently acquired a freehold land parcel in Osaka, Japan for its first data centre development in the country. The total investment for the project is estimated to be over US$700 million or $944.3 million. The data centre is expected to have a power capacity of 50 megawatts (MW).

CLI has stated that the data centre will have the capability to support artificial intelligence (AI), and will incorporate energy-saving technologies, such as advanced cooling systems, to ensure efficient temperature management. The development will also use environmentally friendly products with zero ozone depletion potential and low global warming potential (GWP).

Manohar Khiatani, senior executive director of CLI, who oversees the group’s data centre business, believes that this acquisition aligns with the company’s digitalisation investment strategy and strengthens its presence in Japan, which is one of their focus markets.

Khiatani also highlights the potential for growth in the Japanese data centre market, with a projected compound annual growth rate (CAGR) of 10% from US$23.8 billion in 2023 to US$38.7 billion in 2038. He notes that Japan is the largest data centre market in Asia Pacific, outside of China, with a capacity of 1.4 gigawatts.

CLI is well-positioned to meet the demand for data centres in Osaka, with major cloud service providers already established in the area, including Amazon Web Services, Google Cloud, Microsoft Azure, and Oracle. The group has raised US$600 million for its data centre development funds in Asia since October 2020 and plans to continue identifying investment opportunities for its private fund investors.

Michelle Lee, managing director of private funds (data centre) at CLI, expects strong demand for data centres to continue growing and surpassing new supply. With 97% of investors planning to increase their overall investment in data centres, there is significant institutional interest in this sector.

Overall, CLI has added 23 data centres to its global portfolio since 2021, bringing the total number of data centres under the CapitaLand Group to 27. These data centres, located across Asia and Europe, have a combined power capacity of approximately 800 MW and assets under management of around $6 billion.…