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05-06-12, 21:21
http://www.businesstimes.com.sg/premium/top-stories/paya-lebar-industrial-project-fetches-record-prices
Published June 05, 2012
Paya Lebar industrial project fetches record prices
Units at AZ@Paya Lebar have sold at above $1,000 psf
By Felda Chay
[SINGAPORE] A strata-titled freehold industrial project along Paya Lebar road has been selling at record high prices on the back of keen interest.
Market watchers say they are not surprised that units at AZ@Paya Lebar have sold at above $1,000 per square foot, given the soaring prices of strata-titled industrial property.
Said Ong Kah Seng, director of R'ST Research: "The prices for the project is considered record high but it is within expectations in the course of the overall run-up in strata industrial property prices."
Chua Chor Hoon, DTZ's head of Asia-Pacific research, noted that the project is freehold, and is next to the MacPherson MRT station - due to open before AZ is completed. Unit sizes are also mostly below 1,400 square feet, she said. Smaller units tend to record a higher value.
"Oxley Bizhub is already selling at $700-800 psf with 60-year lease," added Ms Chua.
Launched in the first quarter of this year, ground floor units at AZ@Paya Lebar have sold at between $1,700-2,100 psf and above, while units on the upper floors up have been snapped up at $1,110 psf onwards. Overall, the average launch price for units is between $1,000-1,100 psf, with sizes between 979-2,497 sq ft.
Over 50 per cent, or 103, of the 201 units have been sold. The project is expected to obtain temporary occupation permit (TOP) in June 2016, and to be completed three years after.
Mr Ong said that the property is "very centrally located and convenient for industrialists".
"Also, the bulk of new launches were leasehold projects, especially 60-year leasehold tenure, hence the scarcity of freehold strata industrial properties does allow developers more flexibility in project pricing, including pricing in part of positivity and potential upsides," he added.
In this case, the developer, Ascendas, could be pricing in the idea of Paya Lebar being a thriving business hub, he said.
Tricia Teo, executive director at SLP International Property Consultants, said that the property could be very popular with businesses.
"It's a very good location, being so near the MRT, so many businesses may feel that the amount to pay is worth it," said Ms Teo. "There is also its design - there is direct car park access, which many SME (small- and medium-sized enterprise) bosses like."
Prices of factory and warehouse space have skyrocketed following a surge in interest in industrial projects, likely caused in part by the cooling measures introduced by the government to keep the residential property market in check. The popularity of smaller units, which command a higher value, have also pushed up overall prices.
The recent tightening of development guidelines for industrial sites purchased under the Government Land Sales Programme has also helped to spur demand for projects sitting on freehold, privately-held land. For instance, developers are not allowed to strata sub-divide the development on selected sites in the first 10 years after completing the project.
Published June 05, 2012
Paya Lebar industrial project fetches record prices
Units at AZ@Paya Lebar have sold at above $1,000 psf
By Felda Chay
[SINGAPORE] A strata-titled freehold industrial project along Paya Lebar road has been selling at record high prices on the back of keen interest.
Market watchers say they are not surprised that units at AZ@Paya Lebar have sold at above $1,000 per square foot, given the soaring prices of strata-titled industrial property.
Said Ong Kah Seng, director of R'ST Research: "The prices for the project is considered record high but it is within expectations in the course of the overall run-up in strata industrial property prices."
Chua Chor Hoon, DTZ's head of Asia-Pacific research, noted that the project is freehold, and is next to the MacPherson MRT station - due to open before AZ is completed. Unit sizes are also mostly below 1,400 square feet, she said. Smaller units tend to record a higher value.
"Oxley Bizhub is already selling at $700-800 psf with 60-year lease," added Ms Chua.
Launched in the first quarter of this year, ground floor units at AZ@Paya Lebar have sold at between $1,700-2,100 psf and above, while units on the upper floors up have been snapped up at $1,110 psf onwards. Overall, the average launch price for units is between $1,000-1,100 psf, with sizes between 979-2,497 sq ft.
Over 50 per cent, or 103, of the 201 units have been sold. The project is expected to obtain temporary occupation permit (TOP) in June 2016, and to be completed three years after.
Mr Ong said that the property is "very centrally located and convenient for industrialists".
"Also, the bulk of new launches were leasehold projects, especially 60-year leasehold tenure, hence the scarcity of freehold strata industrial properties does allow developers more flexibility in project pricing, including pricing in part of positivity and potential upsides," he added.
In this case, the developer, Ascendas, could be pricing in the idea of Paya Lebar being a thriving business hub, he said.
Tricia Teo, executive director at SLP International Property Consultants, said that the property could be very popular with businesses.
"It's a very good location, being so near the MRT, so many businesses may feel that the amount to pay is worth it," said Ms Teo. "There is also its design - there is direct car park access, which many SME (small- and medium-sized enterprise) bosses like."
Prices of factory and warehouse space have skyrocketed following a surge in interest in industrial projects, likely caused in part by the cooling measures introduced by the government to keep the residential property market in check. The popularity of smaller units, which command a higher value, have also pushed up overall prices.
The recent tightening of development guidelines for industrial sites purchased under the Government Land Sales Programme has also helped to spur demand for projects sitting on freehold, privately-held land. For instance, developers are not allowed to strata sub-divide the development on selected sites in the first 10 years after completing the project.