60-year leasehold is near Admiralty MRT Station
THE Urban Redevelopment Authority has made a 60-year leasehold industrial site at Woodlands Avenue 12 available for application through the government’s reserve list.
It will be released for tender once a bidder undertakes to pay a minimum acceptable price.
The 347,451 sq ft site is closer to Admiralty MRT Station than two earlier industrial sites at Woodlands Industrial Park E5, sold by the state this year and last year.
As a result, Colliers International director (industrial) Tan Boon Leong reckons the latest site could fetch top bids of $50-$55 per sq ft of potential gross floor area if it was on the market today. This is significantly higher than the $34 psf per plot ratio (psf ppr) that Wee Hur Development paid for a plot on the corner of Woodlands Industrial Park E5 and Woodlands Avenue 4 in a state tender that closed in July this year. In July last year, Soilbuild Group clinched the plot next door for about $30 psf ppr.
All three plots have 60-year leasehold tenure and a 2.5 gross plot ratio – the ratio of maximum potential gross floor area to land area).
However, the latest plot at Woodlands Ave 12 is much larger than the two earlier plots, which means developers will need deeper pockets to bid for it, says Mr Tan.
With a maximum permissible gross floor area of 868,628 sq ft, the land bids of $50-$55 psf ppr predicted by Mr Tan reflect absolute bids of about $43-$48 million. ‘It could be developed into a flatted and ramp-up factory/ware-house project,’ he said.
Based on his estimated land price of $50-$55 psf ppr, the breakeven cost would work out to about $170 psf of net saleable area. Mr Tan reckons the flatted factories could sell for at least $200 psf on average, pointing out that Soilbuild sold flatted factories on its Woodlands site this year at $160 to $190 psf.
However, a seasoned industrial property developer put a much lower land price on the latest site – $30-$40 psf ppr, which is close to the earlier two sites to ensure end-selling prices are kept within reach of SMEs. ‘For flatted factories, the affordable price range for SMEs would be $150-$180 psf,’ he said.
The latest site is zoned Business 1, which means light and clean industry and warehouse are allowed. The two plots sold earlier are zoned Business 2, which also includes general industrial use.
Source : Business Times – 9 Dec 2009
Wednesday, December 9, 2009
Tuesday, December 8, 2009
The third quarter saw a strong surge in Singapore’s private residential market, as transaction volumes rose 20 per cent over the previous quarter. Pr
Singapore appears to be losing a bit of its shine as one of Asia Pacific’s top real estate investment markets.
It slipped three notches among Asian markets in PwC’s latest survey on where institutional investors prefer to put their money next year.
Singapore was ranked number two last year. But it was placed number five among 20 cities in the latest report by PricewaterhouseCoopers (PwC).
Shanghai was the top Asian city for real estate investment, according to the annual survey. It jumped from fifth place last year to first, ahead of Hong Kong, Beijing, Seoul and Singapore.
The survey said this is due mainly to the Chinese government’s decision to inject liquidity into its economy with its massive economic stimulus package. This helped to boost lending and led to a sharp rebound in commercial property prices.
The survey polled more than 270 industry players around the world. It found that concern about softening property values next year due to over-supply dented Singapore’s ranking among developers.
Among the real estate sectors in Singapore, residential investments came up tops in the survey. It attracted a ‘buy’ recommendation from 37% of respondents.
Another 45.1% of respondents gave a ‘hold’ recommendation on residential properties in Singapore, also the lowest recorded among all other types.
However, the survey highlighted some caution as well due to the expected volatile nature of the Singapore market. PwC told MediaCorp that respondents were uncertain about how the residential market will pan out in Singapore next year.
Going forward, the report expects real estate investments in Singapore to pick up momentum, boosted by the transparency of its market.
Despite the bullish atmosphere, market watchers believe it will largely be a slow and steady recovery for the region.
Stephen Blank, senior resident fellow at Urban Land Institute, said: “2010 is going to be a long year, we’re not going to have a sudden victory or surprises. The Asia Pacific region is expected to grow at a rate faster than the rest of the world (but) not as fast as it did in 2007…
“It will be a leading economy again. It should present excellent opportunities from a global perspective. It’s going to be a long year, we’re going to have to work hard. But I think for people who invested in the Asia-Pacific region, they are going to be rewarded.”
Source : Channel NewsAsia – 9 Dec 2009
It slipped three notches among Asian markets in PwC’s latest survey on where institutional investors prefer to put their money next year.
Singapore was ranked number two last year. But it was placed number five among 20 cities in the latest report by PricewaterhouseCoopers (PwC).
Shanghai was the top Asian city for real estate investment, according to the annual survey. It jumped from fifth place last year to first, ahead of Hong Kong, Beijing, Seoul and Singapore.
The survey said this is due mainly to the Chinese government’s decision to inject liquidity into its economy with its massive economic stimulus package. This helped to boost lending and led to a sharp rebound in commercial property prices.
The survey polled more than 270 industry players around the world. It found that concern about softening property values next year due to over-supply dented Singapore’s ranking among developers.
Among the real estate sectors in Singapore, residential investments came up tops in the survey. It attracted a ‘buy’ recommendation from 37% of respondents.
Another 45.1% of respondents gave a ‘hold’ recommendation on residential properties in Singapore, also the lowest recorded among all other types.
However, the survey highlighted some caution as well due to the expected volatile nature of the Singapore market. PwC told MediaCorp that respondents were uncertain about how the residential market will pan out in Singapore next year.
Going forward, the report expects real estate investments in Singapore to pick up momentum, boosted by the transparency of its market.
Despite the bullish atmosphere, market watchers believe it will largely be a slow and steady recovery for the region.
Stephen Blank, senior resident fellow at Urban Land Institute, said: “2010 is going to be a long year, we’re not going to have a sudden victory or surprises. The Asia Pacific region is expected to grow at a rate faster than the rest of the world (but) not as fast as it did in 2007…
“It will be a leading economy again. It should present excellent opportunities from a global perspective. It’s going to be a long year, we’re going to have to work hard. But I think for people who invested in the Asia-Pacific region, they are going to be rewarded.”
Source : Channel NewsAsia – 9 Dec 2009
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