Business Times: Tue, Apr 26
(SINGAPORE) The Urban Redevelopment Authority (URA) yesterday launched a 0.34 ha industrial site at Irving Place for sale by public tender.
The site, which has a lease of 60 years, is the third of four industrial sites to be released for sale under the confirmed list of the government's land sales programme for the first half 2011. The last site, at at Woodlands Avenue 12, will be released for sale in May 2011.
The land parcel released yesterday has a maximum gross floor area of about 126,300 sq ft. It is zoned for 'Business 1 - White' use, which means that shops and offices can be integrated with the industrial space.
The site is expected to be popular and could draw a top bid in the range of $200 to $270 per square foot per plot ratio (psf ppr), analysts said.
'The site is expected to draw strong interest from developers, due to its strategic location and the current and expected strength of industrial properties, in terms of leasing and sales interest,' said Ong Kah Seng, Cushman & Wakefield senior manager for Asia-Pacific research.
The Tai Seng MRT station, which is near the site, will also be a key factor in raising developers' interest, Mr Ong added. Another point in its favour is the small size, which makes it an affordable investment for many companies.
Analysts noted that demand for industrial properties is now very strong, and is likely to remain healthy, supported by an improvement in the manufacturing sector.
The price index for factories grew by 8.6 per cent quarter-on-quarter in Q1 2011, reflecting an increase from the 6.3 per cent gain in Q4 2010. The rental index for factories also showed a faster pace of growth for the quarter. The rental index climbed 8.3 per cent over Q1 2011 up from an increase of 3.4 per cent in Q4 2010.
'The active investment market for industrial properties in the first quarter is a good indicator of strong demand for such properties,' said Li Hiaw Ho, executive director for CBRE Research.
The tender for the site will close at noon on June 22.