Month: February 2025

Wed, 27 Oct 2021

According to a research report by Colliers in February, the industrial property market in Singapore is expected to slow down this year due to an increase in supply and a decrease in demand. The firm predicts that both rental and price growth will moderate to 0-2% in 2025, compared to the 3.5% growth seen last year.

The report notes that JTC’s data for the fourth quarter of 2024 shows a market that is losing momentum. While the rental index continued to grow for the 17th consecutive quarter, it only increased by 0.5% quarter-on-quarter, a significant decline from the 8.9% growth seen in 2023. The price index also grew by 0.5% in the same quarter, a drop from the 1.2% growth in the previous quarter. This trend indicates a slower growth rate compared to the previous year where property prices rose by 2.1%, less than half of the 5.1% increase in 2022.

Colliers explains that the increase in supply this year, which is more than twice the supply in 2024, is creating an imbalance between supply and demand. This has resulted in slower precommitments and lower occupancy in completed projects. The firm also points out that cautiousness among occupiers due to high interest rates and escalating operating expenses is also contributing to the slowdown in rental growth.

On a global level, the rise in trade protectionism is causing uncertainty in the market, affecting business confidence and investment decisions. However, Colliers expects demand to continue from the semiconductor, logistics, and advanced manufacturing sectors. As for leasing activities, the firm anticipates a gradual ramp-up as policies become clearer and market sentiments improve, driven by the ongoing upturn in the chip cycle.

It is crucial for international investors to have a thorough understanding of the regulations and limitations surrounding property ownership in Singapore. In general, foreigners have more flexibility in purchasing a condo compared to landed properties, which have stricter ownership guidelines. However, foreign buyers must be aware of the Additional Buyer’s Stamp Duty (ABSD), currently set at 20% for their initial property acquisition. Despite this extra expense, the reliable stability and potential for growth in Singapore’s real estate market remain appealing factors for foreign investment. Therefore, it is prudent for foreign investors to consider investing in Singapore’s condo market.

Given the increase in supply and projected moderation in rents, Colliers believes this could be a favorable year for tenants. With newer industrial developments offering more modern specifications, more businesses may consider relocating from older and aging manufacturing spaces. Nicolas Menville, Executive Director and Head of Singapore-based industrial clients for Colliers, commented that this could encourage further relocation to newer projects.

In conclusion, the industrial property market in Singapore is expected to slow down this year due to an increase in supply and a decrease in demand. However, the market is expected to be supported by certain sectors, and there may be more options available for tenants, creating opportunities for businesses to relocate to newer and more modern industrial developments.…

Tan Boon Liat Building, a well-known industrial building located at 315 Outram Road, has been put up for collective sale through a public tender process. The reserve price for this freehold property is set at $1.15 billion. It occupies two separate land plots that have been zoned for “Business 1” use, with a total area of approximately 175,655 sq ft. The building stands at 15 storeys high and is popular for its various furniture and home decor stores.

The property’s advisor and marketing agent, Cushman & Wakefield, reported that the Urban Redevelopment Authority (URA) has issued an Outline Planning Advice on Jan 22, proposing to rezone the site to “Residential with Commercial at 1st storey” and increase the plot ratio from 3.1 to 4.9. This would result in a 50% increase in the total allowed gross floor area (GFA).

As a result of the proposed rezoning, URA has also recommended incorporating a few remnant state land plots into the main plot. These plots span approximately 20,451 sq ft, subject to final survey and approval from the relevant authorities.

Cushman & Wakefield estimates that the potential GFA of the site, including the state land plots and any bonus GFA entitlement, is over 1.06 million sq ft. The first storey can accommodate a commercial GFA of up to 16,146 sq ft.

In addition to the residential component, a minimum GFA of 161,459 sq ft should be reserved for Serviced Apartments II (SA2), where a minimum three-month stay is required. The allowed heights for the new development range from 130m to 180m.

Based on the reserve price, which includes land betterment charges on rezoning, the estimated premium for the remnant state land and the 10% bonus GFA for the residential portion, the estimated land rate is approximately $1,888 psf per plot ratio.

Singapore’s thriving economy, stable political climate, and luxurious lifestyle have made it a top destination for real estate investment, particularly in the form of condos. This is evident in the growing interest from both local and foreign investors. The city-state’s real estate market is brimming with prospects, with condos being a popular choice due to their advantageous location, modern facilities, and potential for excellent returns. In this article, we will delve into the advantages, considerations, and necessary steps to take when investing in a Singapore Condo.

Recent industrial sales transactions at Tan Boon Liat Building have ranged between $850 psf to $1,100 psf. 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 prime location. The building’s proximity to the upcoming Havelock MRT station on the Thomson-East Coast Line (TEL) is also a significant advantage for potential homebuyers.

Sim adds that one of the most significant draws for developers is that no Additional Buyer’s Stamp Duty (ABSD) will be imposed on this site as it currently has a “Business 1” zoning.

The tender for the site will close on March 18 at 3pm.…

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Investing in a condo involves a crucial component – financing. In Singapore, there are various mortgage choices available, but it is crucial to have a thorough understanding of the Total Debt Servicing Ratio (TDSR) framework. This framework puts a cap on the loan amount a borrower can take, taking into consideration their income and current debt responsibilities. It is highly recommended for investors to consult financial advisors or mortgage brokers to gain a better understanding of the TDSR and make well-informed decisions about their financing options. This is important to avoid over-leveraging. Additionally, staying updated on New Condo Launches can also provide valuable insights when considering financing for a condo investment.

Park Nova’s largest penthouse has been sold for a record-breaking price, setting a new high for the development. The five-bedroom unit, located on the 20th floor and measuring 5,899 sq ft, was sold by the developer for $38.888 million on Jan 21, according to a URA Realis database caveat.

This transaction marks the highest price ever recorded for a unit at Park Nova, both in absolute price and psf. The previous records were held by a 4,499 sq ft penthouse that sold for $26.026 million in May 2021 ($5,784 psf).

This sale also represents the second-highest psf-price ever registered for a condo unit in Singapore, second only to a unit at The Marq on Paterson Hill. In 2011, a four-bedroom unit on the 20th floor of the development was sold for $20.54 million ($6,650 psf).

The recently sold penthouse at Park Nova is rumored to be part of a collection of properties linked to a $3 billion money laundering case. The unit was previously reported to have sold in 2021 for $34.438 million ($5,838 psf).

In recent weeks, the developer has sold three other units at Park Nova. On Jan 17, a four-bedroom apartment spanning 2,906 sq ft on the 19th floor sold for $16.59 million ($5,708 psf). On Dec 27, a four-bedroom unit measuring 2,896 sq ft on the 18th floor sold for $15.99 million ($5,522 psf).

Park Nova is a freehold luxury condo with 54 units 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.

With its prime location and luxury offerings, Park Nova continues to attract high-end buyers. To find out more about the transaction prices and available units, search for the latest New Launches. You can also check out the latest listings for Park Nova properties and generate price trend graphs for new launch condos in District 10.…

CapitaLand Investment (CLI) has recently made a major acquisition in Osaka, Japan, purchasing a freehold land parcel for the development of its first data centre in the country. The project, which will require an investment of over US$700 million or $944.3 million, will secure a power capacity of 50 megawatts (MW).

CLI has stated that the data centre will be equipped to support artificial intelligence (AI) capabilities. In order to enhance energy efficiency, the data centre will utilize advanced cooling technologies and adhere to industry best practices for temperature management. Additionally, the centre will utilize environmentally-friendly products with zero ozone depletion potential or a global warming potential (GWP) of less than 100.

Securing the necessary financing is a crucial step in the process of investing in a condominium. In Singapore, there are various mortgage choices available for potential investors to explore. However, it is of utmost importance to be familiar with the Total Debt Servicing Ratio (TDSR) framework, which puts a cap on the amount of loan that can be acquired based on one’s income and current debt obligations. It is advisable to have a good grasp of the TDSR and to seek guidance from financial experts or mortgage brokers while considering options. Doing so can assist investors in making well-informed decisions regarding their financing and preventing over-leveraging. Additionally, for those interested in Singapore projects, Singapore Projects provides useful resources and updates.

Senior Executive Director of CLI, Manohar Khiatani, who is responsible for overseeing the group’s data centre business, views this acquisition as a strategic move in line with the group’s digitalization investment theme. The purchase also serves to expand CLI’s geographical reach and strengthen its presence in Japan, one of the group’s key focus markets.

Khiatani notes that Japan is considered a Tier 1 data centre market with significant potential for growth. The country is projected to see a compound annual growth rate of 10%, growing from US$23.8 billion in 2023 to US$38.7 billion in 2038. Japan is also the largest data centre market in Asia Pacific, second only to China, with a capacity of 1.4 gigawatts.

CLI’s acquisition is well-positioned to tap into the demand within Osaka’s established data centre cluster, as major cloud service providers like Amazon Web Services, Google Cloud, Microsoft Azure, and Oracle are already present in the region. Managing Director of Private Funds (Data Centre) at CLI, Michelle Lee, highlights the strong institutional interest in data centre investments, with 97% of investors planning to increase their overall investment in the sector.

Given the rising demand for data centres, Lee anticipates double-digit growth and a potential shortage of new supply. She also reveals that CLI has raised US$600 million for its data centre development funds in Asia since October 2020, and will continue to actively seek out investment opportunities for its private fund investors.

With this recent acquisition, CLI now has a total of 23 data centres in its global portfolio. The CapitaLand Group, under which CLI falls, currently has 27 data centres across Asia and Europe with a total power capacity of 800 MW and assets under management of $6 billion.

On Feb 3, shares in CLI closed at $2.42, a decrease of 1.63%.…