reporter2
24-09-13, 11:51
http://www.straitstimes.com/archive/saturday/premium/money/story/investors-go-west-industrial-space-20130921
HOT SPOT
Investors go west for industrial space
Interest driven by planned projects there; rental yields 'promising'
Published on Sep 21, 2013
By Mok Fei Fei
IT'S NOT all quiet on the western front, at least not for industrial properties there.
Activity among both investors and users of industrial space is on the rise across the Bukit Batok, Clementi, Jurong East, Jurong West, Pioneer and Tuas areas.
Much of the interest is being driven by planned development for that part of the island, such as the fast-emerging Jurong Lake District, a major business hub.
Analysts also note that four more new MRT stations will be added on the East-West line to Tuas, raising the level of accessibility there.
Also, the container ports at Tanjong Pagar and Pasir Panjang will gradually be moved to Tuas, which is slated to become the main container port in Singapore.
Speculation that a terminal for the upcoming high-speed rail link between Singapore and Malaysia could be built in Tuas is also stirring interest.
SLP International executive director of consultancy and research Nicholas Mak said rental yields in the west are quite promising.
For a 60-year leasehold project in Bukit Batok, for instance, the rental yield is between 6 and 8 per cent, while that for a 30-year leasehold property in Jurong can go as high as 8.5 per cent.
Colliers International executive director for industrial services, projects and sales Tan Boon Leong cautions that some sites are set aside for B2 industrial use.
This means the space can be used for light industrial activity.
"Investors must have the stomach because it's not the clean type of industries and the area could be oily," he said.
Based on the number of page views on property portal STProperty, Pioneer Junction has emerged as the industrial property that has the most views last month.
Explaining the popularity, Mr Mak said: "Pioneer Junction has a mix of flatted and ramp-up factories. It is one of the few industrial developments and the only flatted factory within five minutes' walking distance to the Pioneer MRT."
He added that other projects in the vicinity of Pioneer Junction, such as iSpace, Pioneer Point and Pioneer Centre, also offer buyers a wide selection of units.
Data from the Urban Redevelopment Authority showed that a unit in Hillview Building was transacted at a price of $703 per sq ft in July.
Mr Tan said the unit was able to achieve that price because it is a freehold development.
Mr Mak said: "The buyer of the unit... could be hoping that the Hillview Building will be sold via an en bloc sale."
[email protected]
HOT SPOT
Investors go west for industrial space
Interest driven by planned projects there; rental yields 'promising'
Published on Sep 21, 2013
By Mok Fei Fei
IT'S NOT all quiet on the western front, at least not for industrial properties there.
Activity among both investors and users of industrial space is on the rise across the Bukit Batok, Clementi, Jurong East, Jurong West, Pioneer and Tuas areas.
Much of the interest is being driven by planned development for that part of the island, such as the fast-emerging Jurong Lake District, a major business hub.
Analysts also note that four more new MRT stations will be added on the East-West line to Tuas, raising the level of accessibility there.
Also, the container ports at Tanjong Pagar and Pasir Panjang will gradually be moved to Tuas, which is slated to become the main container port in Singapore.
Speculation that a terminal for the upcoming high-speed rail link between Singapore and Malaysia could be built in Tuas is also stirring interest.
SLP International executive director of consultancy and research Nicholas Mak said rental yields in the west are quite promising.
For a 60-year leasehold project in Bukit Batok, for instance, the rental yield is between 6 and 8 per cent, while that for a 30-year leasehold property in Jurong can go as high as 8.5 per cent.
Colliers International executive director for industrial services, projects and sales Tan Boon Leong cautions that some sites are set aside for B2 industrial use.
This means the space can be used for light industrial activity.
"Investors must have the stomach because it's not the clean type of industries and the area could be oily," he said.
Based on the number of page views on property portal STProperty, Pioneer Junction has emerged as the industrial property that has the most views last month.
Explaining the popularity, Mr Mak said: "Pioneer Junction has a mix of flatted and ramp-up factories. It is one of the few industrial developments and the only flatted factory within five minutes' walking distance to the Pioneer MRT."
He added that other projects in the vicinity of Pioneer Junction, such as iSpace, Pioneer Point and Pioneer Centre, also offer buyers a wide selection of units.
Data from the Urban Redevelopment Authority showed that a unit in Hillview Building was transacted at a price of $703 per sq ft in July.
Mr Tan said the unit was able to achieve that price because it is a freehold development.
Mr Mak said: "The buyer of the unit... could be hoping that the Hillview Building will be sold via an en bloc sale."
[email protected]