Thursday, February 7, 2013

Changi property prices soar quietly

Feb 06, 2013 - By: Singapore

The Changi neighbourhood may house one of the world’s best airports but when compared against its surrounding mature residential estates of Tampines and Simei, it pales in comparison in terms of investment appeal as the area hardly garners the attention of property investors.

However, this may set to change as the non-residential property market witnessed a slight increase for the past year in the low-key district.

Changi is largely made up of industrial facilities and business park space.

For instance, it houses the Sim Siang Choon Building and Changi Business Park which consists of the UE BizHub East and Honeywell Building.

The area does consist of retail spaces but are limited to three shopping belts in Changi City Point, Changi Airport and Singapore Expo. Its key offering lies in developing industrial units.

With the launch of i-Lofts@Changi, we see transaction prices rising with units fetching an average price of $266 per sq ft in 2012, up 21 per cent from the average $219 in 2011. The project is a major source of strata-titled units up for sale in Changi that contains 36 units located along Changi North Street 1. It is a 30 year leasehold development.

Apart from that, rentals have also been on the rise.

In the last quarter of 2012, median rents of warehouse space in the Changi area registered $1.80 psf per month. This is about 6 per cent higher than a year before.

While the property market in the area is still far from buzzing, newer developments are expected to whip up more excitement.

For instance, UE BizHub East which is set to be a business hub in the east is located at the heart of the Changi Business Park. With the strategic location, the completed development is expected to house a business hotel with up to 300 rooms as well as office and retail space. Firms such as Cisco Systems and British Telecom have already inked their leases within the BizHub development.

Located less than a mile away, One@Changi is also an up and coming business hub that has managed to attract several big-name companies to sign leases with them, some of which includes Credit Suisse and IT firm EMC. One@Changi City consists of business park space, the Changi City Point shopping mall and a boutique hotel residence, Capri developed by Fraser.

These two developments, with the addition of the upcoming Singapore University of Technology and Design campus in Changi South, will undoubtedly supplement the modest 16,500 residents living in Changi, thereby boosting shopping traffic in the area.

Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C

Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)

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