It is crucial for those considering investing in Singapore’s real estate sector to have a comprehensive grasp of the regulations and limitations surrounding property ownership for foreigners. While the ownership guidelines for landed properties are quite stringent, the policies for foreign buyers looking to purchase condominiums are comparatively more flexible. Nonetheless, it is important for foreign investors to take into account the Additional Buyer’s Stamp Duty (ABSD), which currently stands at 20% for their initial property purchase. This added expense notwithstanding, the consistent growth and potential of the Singapore property market continue to attract foreign investments. Moreover, with an abundance of new condo launches, there are now even more opportunities for foreign investors to tap into the flourishing Singapore property market and New Condo Launches in particular.
The property at Ching Shine Industrial Building is up for collective sale by tender, with JLL as the sole marketing agent. The minimum price for the freehold building is set at $113 million. The building, which was built in the early 1980s, consists of 52 strata units and boasts 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.
Under the URA Master Plan 2019, the building is zoned “Business 1” with a gross plot ratio of 2.5. According to JLL, more than 80% of the owners have given their consent for the collective sale at the minimum price of $113 million. At the existing gross plot ratio of 2.79, this price translates to a unit land rate of around $823 psf per plot ratio.
JLL also highlights that subject to URA approval, the site could potentially be converted into a food factory. The National Environment Agency (NEA) has confirmed that the site meets the buffer requirements for redevelopment into a multi-user factory, while the Singapore Food Agency has informed URA of their in-principle non-objection to the proposed food factory.
Alternatively, JLL notes that the freehold asset could also present an investment opportunity for family offices seeking long-term growth, as well as owner-occupiers looking to establish a corporate presence. Nicholas Ng, senior director of capital markets at JLL Singapore, believes the site would also appeal to developers, as there is no additional buyer’s stamp duty, which can impact project timelines.
The property enjoys excellent connectivity, with major expressways such as the PIE, CTE, and KPE nearby. It is also a short walk from Tai Seng MRT Station on the Circle Line. The building is situated in the Tai Seng Industrial estate, surrounded by food factories including Breadtalk IHQ, Sakae Building, and Food Empire Building. Nearby amenities include Grantral Mall @ Macpherson and 18 Tai Seng.
In November 2023, Noel Building, a freehold Business 1 industrial building at 50 Playfair Road, was sold en bloc for $81.18 million, which was 17% above its $70 million guide price. Ng believes this transaction demonstrates the “fervent demand” for such assets in the area. He expects a similarly competitive response for Ching Shine Industrial Building.
The tender for Ching Shine Industrial Building closes on April 3 at 3pm.