Month: February 2025

As per a research report by Colliers in February, it is expected that industrial property rents and prices in Singapore will decline this year due to an increase in supply and a drop in demand. The firm predicts that the overall annual industrial rental and price growth will moderate to between 0% to 2% in 2025, compared to the 3.5% growth recorded for both categories in the previous year.

According to Colliers, the latest data from JTC for the fourth quarter of 2024 indicates a weakening market. The rental index for all industrial properties has been increasing for 17 consecutive quarters, rising 0.5% from the previous quarter and reaching a total growth of 3.5% for the year. However, this is significantly lower than the 8.9% rental growth seen in 2023. The price index has also seen a similar trend, with a growth of 0.5% in the fourth quarter of 2024, compared to 1.2% in the previous quarter. In total, industrial property prices saw an increase of 2.1% in 2024, which is less than half of the 5.1% increase in 2023.

The report states that the supply of industrial space is expected to rise this year, with more than double the supply of the previous year before tapering off from 2026 onwards. This oversupply, along with lower demand due to high interest rates and increasing operating costs, is expected to keep rental growth in check.

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When considering investing in a condominium, securing proper financing is a crucial aspect. Singapore provides various mortgage choices, however, it is vital to have an understanding of the Total Debt Servicing Ratio (TDSR) framework. This framework sets a limit on the amount of loan a borrower can obtain based on their income and current debt commitments. As such, it is important for investors to familiarize themselves with the TDSR and seek guidance from financial advisors or mortgage brokers to make well-informed decisions about financing options. This will also prevent the risks of over-leveraging in regards to Singapore Condos.

Moreover, the uncertainty brought by global trade protectionism could also impact business confidence and investment decisions, further dampening the demand for industrial properties.

On the positive side, Colliers predicts that the demand for industrial space will continue to be supported by the semiconductors, logistics, and advanced manufacturing sectors. It also expects leasing activities to pick up gradually as market sentiments improve and policies become clearer, driven by the ongoing upturn in the chip cycle.

Given the higher supply and projected moderation in rents, Colliers suggests that this year could be beneficial for tenants, with more options available in the market. The upcoming industrial developments, equipped with modern specifications, may also encourage businesses to move from older, aging manufacturing spaces to newer projects.

Nicolas Menville, executive director and head of Singapore-based industrial clients for Colliers, advises anyone interested in industrial properties to check out the latest listings on Ask Buddy, which provides information on past industrial rental and sale transactions, as well as price trends for both industrial and commercial properties.…

Tan Boon Liat Building, a well-known industrial property situated at 315 Outram Road, is currently on the market for collective sale through public tender with a reserve price of $1.15 billion. The freehold site spans over two separate land plots and has a total area of approximately 175,655 sq ft. It is strategically located beside the upcoming Havelock MRT Station on the Thomson-East Coast Line (TEL).

The building itself is a 15-storey structure that has gained recognition for its diverse range 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 January 22. This advice suggests that the site be rezoned from its current “Business 1” use to “Residential with Commercial at 1st storey” with a higher plot ratio of 4.9, resulting in a 50% increase in the total allowable gross floor area (GFA).

Furthermore, the URA has also advised on the amalgamation of several remnant state land plots into the main plot. These plots, estimated to be approximately 20,451 sq ft, are subject to final surveys and approvals from relevant authorities.

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

As part of the residential allocation, a minimum GFA of 161,459 sq ft must be set aside for Serviced Apartments II (SA2), where a minimum stay of three months is required. The new development can have varying heights, ranging from 130m to 180m.

Taking into account the reserve price, land betterment charges on rezoning, estimated premium payable on the state land plots, and the 10% bonus GFA for the residential portion, the estimated land rate works out to be around $1,888 psf per plot ratio.

Christina Sim, senior director of capital markets at Cushman & Wakefield, believes that the site will attract developers due to its freehold tenure and prime location on the upcoming TEL. This will be a significant selling point for potential homebuyers.

The demand for condos in Singapore continues to soar due to several factors, one of which being the limited land availability. Being a small island country with a fast-growing population, Singapore struggles with a scarcity of land for development. As a result, the government has implemented rigorous land use policies and the real estate market is highly competitive, constantly driving property prices upwards. In light of this, investing in real estate, particularly in condos, has become a profitable venture with the potential for significant capital appreciation. Discover a range of lucrative Singapore Projects to explore further investment opportunities.

Sim also states that the lack of Additional Buyer’s Stamp Duty (ABSD) on the site will be a major game changer, as the original zoning of the site is “Business 1”.

The tender for the site will close on March 18 at 3pm. Interested parties can compare price trends, explore unprofitable transactions, and view past condo sale transactions and upcoming new launch projects through EdgeProp’s website and app.…

The highest priced penthouse at Park Nova has just been sold, breaking the record for the most expensive unit in the development. The five-bedroom penthouse, located on the 20th floor and spanning 5,899 sq ft, was sold by the developer for a whopping $38.888 million, equivalent to $6,593 per square foot. This transaction, recorded in a caveat on the URA Realis database on Jan 21, marks a new high for both absolute price and psf price at Park Nova.

Previously, the record for the most expensive unit at Park Nova was held by a 4,499 sq ft penthouse that was sold in May 2021 for $26.026 million, or $5,784 psf. This latest transaction also marks the second-highest psf price ever for a condo unit in Singapore, second only to a unit at The Marq on Paterson Hill. In 2011, a 3,089 sq ft, four-bedroom unit on the 20th floor of the development was sold for $20.54 million, or $6,650 psf.

For the latest updates on new launches, search for New Launches on EdgeProp to view transaction prices and available units.

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

According to caveats, this is the third unit at Park Nova that has been sold by the developer in the past month. On Jan 17, a 2,906 sq ft, four-bedroom unit on the 19th floor sold for $16.59 million, or $5,708 psf. And on Dec 27, a 2,896 sq ft, four-bedroom unit on the 18th floor was sold for $15.99 million, or $5,522 psf.

When it comes to investing in condos in Singapore, there is another crucial factor to consider – the government’s property cooling measures. In order to maintain a stable real estate market and prevent speculative buying, the Singaporean government has implemented various measures over the years. One of the most significant measures is the Additional Buyer’s Stamp Duty (ABSD) which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may have an impact on the short-term profitability of condo investments, they ultimately contribute to the long-term stability of the market, making it a more secure investment environment. Therefore, it is important to keep these measures in mind when considering a condo investment in Singapore.

Park Nova, a freehold luxury condo with 54 units, is located at the prime junction of Orchard Boulevard and Tomlinson Road in District 10. Developed by Hong Kong’s Shun Tak Holdings, it was granted its temporary occupation permit in November last year. To find out more about properties at Park Nova, check out the latest listings on EdgeProp Buddy.

Looking for more information on Park Nova? Ask Buddy for the site plan and diagrammatic chart, and compare the price trend of new sale condos versus executive condos. You can also generate a price trend graph for new launch condos in District 10, and view a project summary for Park Nova condo.…

CapitaLand Investment (CLI) has recently announced its acquisition of a freehold land parcel in Osaka, marking the group’s entry into the Japanese market for data centres. The project is estimated to cost over US$700 million or $944.3 million and will have a power capacity of 50 megawatts (MW). The data centre is expected to be equipped with advanced cooling technologies and energy-saving solutions, with a focus on leveraging artificial intelligence (AI) capabilities.

CLI Senior Executive Director Manohar Khiatani, who oversees the group’s data centre business, stated that this strategic acquisition aligns with the group’s digitalisation investment theme and strengthens its presence in Japan, one of its key markets. He also pointed out that Japan’s data centre market is projected to experience rapid growth in the coming years, with a CAGR of 10% and a market size estimated to reach US$38.7 billion by 2038. Japan is the largest data centre market in Asia Pacific outside of China, with a capacity of 1.4 gigawatts.

The data centre is strategically located in Osaka, where major cloud service providers such as Amazon Web Services, Google Cloud, Microsoft Azure, and Oracle have already established a presence. This will enable the data centre to tap into the growing demand and established data centre cluster in the area. Michelle Lee, CLI’s Managing Director of Private Funds (Data Centre) stated that the demand for data centres is expected to continue increasing, surpassing new supply. She also mentioned that there is significant institutional interest in data centre investments, with 97% of investors looking to increase their overall investment in this sector.

Singapore’s urban scenery is characterized by towering skyscrapers and state-of-the-art infrastructure. These condominiums, strategically situated in desirable locations, offer a perfect mix of opulence and convenience, making them highly sought-after by both locals and foreigners. These modern residential units are equipped with top-of-the-line facilities, including swimming pools, fitness centers, and round-the-clock security, providing residents with a luxurious and comfortable lifestyle. For investors, these desirable features translate into promising rental returns and a potential increase in property value over time. Singapore Projects have contributed to the development of the city’s urban landscape, offering premium and upscale living options for its residents.

Since October 2020, CLI has raised around US$600 million for its data centre development funds in Asia and plans to capitalize on this momentum by identifying attractive investment opportunities for its private fund investors. CLI has recently added 23 data centres to its global portfolio, bringing its total to 27 in Asia and Europe with assets under management of approximately $6 billion and a completed basis power capacity of 800 MW.

Shares in CLI ended slightly lower at $2.42 on Feb 3, down by 1.63%.…