Month: February 2025

by tender

Colliers’ February research report suggests that industrial property prices and rents in Singapore will likely see a moderation this year due to an increase in supply and weaker demand. The firm predicts that both rental and price growth will range between 0% to 2% in 2025, compared to the 3.5% growth seen for both categories in the previous year.

According to Colliers, JTC’s 4Q2024 data reflects a market that is showing signs of slowing down. The JTC All Industrial rental index has seen 17 consecutive quarters of growth, with a 0.5% increase in the fourth quarter of 2024 bringing the total growth for the year to 3.5%. However, this is a substantial decline from the 8.9% growth recorded in 2023. Similarly, the price index grew by 0.5% in 4Q2024, a drop from the 1.2% growth in the previous quarter. This marks a considerable decrease from the 5.1% increase seen in 2024.

Colliers states that the supply of industrial space is expected to increase this year, with more than double the supply in the previous year. However, the firm predicts a tapering off from 2026 onwards. This increase in supply has resulted in an imbalance between supply and demand, with segments of the market seeing slower precommitments for upcoming supply or lower occupancy rates for completed projects. The higher supply, combined with cautiousness among occupiers due to high interest rates and operating expenses, is expected to continue to dampen rental growth.

Moreover, the uncertainty brought about by heightened trade protectionism in global markets may also impact business confidence and investment decisions. On the other hand, Colliers believes that demand for industrial properties will remain supported by the semiconductor, logistics, and advanced manufacturing sectors. The firm also predicts a gradual increase in industrial leasing activities as policies become clearer and market sentiments improve, driven by the ongoing upturn in the chip cycle.

In light of the projected moderation in rents and the increase in supply, Colliers suggests that this could be a good year for tenants, with more options available in the market. The firm also notes that modern and well-equipped industrial developments could entice businesses to relocate from older manufacturing spaces to newer projects. Nicolas Menville, executive director and head of Singapore-based industrial clients for Colliers, says that tenants should take advantage of this opportunity. Interested parties can check out the latest listings for industrial real estate properties and past transactions for rentals and sales to compare prices and trends between commercial and industrial properties.…

Tan Boon Liat Building, a commercial property situated at 315 Outram Road, is currently on the market for collective sale through a public tender at a reserve price of $1.15 billion. The land, which is freehold and covers a total of approximately 175,655 square feet, is made up of two separate plots of land that have been zoned for “Business 1” use.

Located next to the Havelock MRT Station along the Thomson-East Coast Line (TEL), the property is currently occupied by a 15-storey building that is well-known for its many furniture and home decor stores. According to Cushman & Wakefield, the appointed advisor and marketing agent for the property, the Urban Redevelopment Authority (URA) has recently issued an Outline Planning Advice that recommends rezoning the site to “Residential with Commercial at the 1st storey” with a plot ratio of 4.9, an increase from the current 3.1 ratio. This would result in a 50% increase in the total allowed gross floor area (GFA).

In addition, the URA has also advised on the acquisition of a few remnant state land plots that will be incorporated into the main plot. These state land plots are estimated to measure around 20,451 square feet, subject to the final survey and approval from the relevant authorities.

Cushman & Wakefield has estimated that the potential GFA of the site, including the state land plots and any bonus GFA entitlement, is over 1.06 million square feet. The commercial space on the 1st storey can have a maximum GFA of about 16,146 square feet.

Under the residential allocation, a minimum GFA of approximately 161,459 square feet will be set aside for Serviced Apartments II (SA2), which are required to have a minimum stay of three months. The allowable height for the new development ranges from 130 meters to 180 meters.

Based on the reserve price, which includes land betterment charges for rezoning, estimated premium payable for the remnant state land plots, and the 10% bonus GFA for the residential portion, the land rate is estimated to be 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 the property will attract developers due to its freehold tenure and its location next to the TEL, which will be a draw for homebuyers. She also notes that the lack of Additional Buyer’s Stamp Duty (ABSD) will be a major advantage for potential buyers, as the original site is currently zoned as “Business 1”.

The tender for the site will close on March 18 at 3pm. Ask BuddyCompare price trends for new condo sales versus new EC salesMost unprofitable landed transactions in the past yearCondo projects with the most unprofitable transactionsPast condo sale transactionsUpcoming new launch projectsCompare price trends for new condo sales versus new EC salesMost unprofitable landed transactions in the past yearCondo projects with the most unprofitable transactionsPast condo sale transactionsUpcoming new launch projects…

Recently, the largest penthouse at Park Nova has been sold, setting a new record price for the development. The 5-bedroom unit on the 20th floor spans 5,899 sq ft and was purchased by the developer for $38.888 million, equivalent to $6,593 psf, according to a caveat lodged on Jan 21 on the URA Realis database.

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

The recent sale has also set the second-highest psf-price for a condo unit in Singapore. The current record-holder is a unit at The Marq on Paterson Hill, which was sold in 2011 for $20.54 million, equivalent to $6,650 psf.

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

According to caveats lodged, the developer has sold three units at Park Nova 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). Prior to that, on Dec 27, a four-bedroom unit measuring 2,896 sq ft on the 18th floor was sold for $15.99 million ($5,522 psf).

Park Nova is a freehold luxury condo situated 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. For more information on the latest listings for Park Nova, please visit EdgeProp’s New Launches page.

In addition, readers can also ask EdgeProp’s AI-powered virtual assistant, Buddy, to show them the site plan and diagrammatic chart for Park Nova, as well as compare the price trends of Condo new sales versus EC new sales. They can also generate price trend graphs for new launch condos in District 10 and check out the project summary for Park Nova condo.

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CapitaLand Investment (CLI) has recently announced their acquisition of a freehold land parcel in Osaka, Japan, with plans to develop their first data centre in the country. This development will involve an investment of over US$700 million or $944.3 million and has secured 50 MW of power capacity for the project.

CLI has stated that this data centre will be equipped to support artificial intelligence (AI) capabilities and will incorporate energy-efficient solutions such as advanced cooling technologies and industry-leading temperature management practices. Additionally, the data centre will prioritize the use of environmentally friendly products with zero ozone depletion potential or a global warming potential (GWP) of less than 100.

According to Manohar Khiatani, senior executive director of CLI responsible for the data centre business, this acquisition fits perfectly with the group’s focus on digital investments and expands their presence in Japan, one of their key markets. Khiatani also points out that Japan’s data centre market is expected to grow significantly in the coming years, with a projected compound annual growth rate (CAGR) of 10% from 2023 to 2038. With a current capacity of 1.4 gigawatts, Japan is also the largest data centre market in Asia Pacific, outside of China.

The strategic location of the new data centre in Osaka, which is already home to major cloud service providers like Amazon, Google, Microsoft, and Oracle, makes it well-positioned to meet the growing demand for data centres in the region. CLI’s managing director of private funds (data centre), Michelle Lee, believes that this demand will continue to rise, surpassing new supply and attracting strong institutional interest in data centre investments. She also notes that CLI has already raised US$600 million for their data centre development funds in Asia since October 2020 and will continue to seek out attractive investment opportunities for their private fund investors.

With this recent acquisition, CLI now has a global portfolio of 23 data centres, with a combined power capacity of 800 MW and approximately $6 billion in assets under management. The CapitaLand Group, of which CLI is a part, now has a total of 27 data centres across Asia and Europe. On 3 February 2021, CLI’s shares closed at $2.42, 4 cents lower or 1.63% down from the previous day.…