Bedok and Geylang have always been very popular, specifically because they are near the city fringe. Industrial properties in Geylang is seeing a revival. Development of the Kaki Bukit area (district 14), which is considered part of Geylang has several B2 developments – like Premier@Kaki Bukit and Synergy.
The new AZ@Paya Lebar is also equally popular despite its price, due to its proximity to the MRT station.
Its only normal for developers to know that these industrial properties will be very well received, and hence price them higher than the prevailing market price. Despite these prices, investors and buyers are still attracted to them.
Article from The Straits Times – 31 October 2012
Woodlands, Bedok and Geylang have emerged as hot spots for industrial property investors this year, as the red-hot sector draws growing interest.
Developers sold a total of 435 new industrial units in the third quarter, with 37 per cent of sales in the Geylang and Kallang planning areas, an analysis of caveats lodged with the Urban Redevelopment Authority (URA) has found.
Projects in these areas include AZ @ Paya Lebar, Oxley Bizhub and CT Hub 2.
Industrial prices have now charged up by more than 60 per cent in under two years, new figures out earlier this week showed.
Sales volumes have also been climbing, with 2,894 transactions in the first 10 months of the year. This is up 14 per cent from the same period last year, and is 28 per cent more than in 2010.
This sharp increase has prompted a property expert to call for more detailed data to properly understand the phenomenon – especially as government cooling measures may in the offing.
URA data out on Monday showed that industrial property prices surged 8.8 per cent in the three months to Sept30.
This took price gains to a whopping 27 per cent in the first nine months of the year. Last year, they surged 27 per cent.
A growing number of older industrial units at projects like Eunos Techpark and Tan Boon Liat Building have eclipsed the $1,000 per sq ft (psf) mark, costing more than many homes in the suburban areas. Meanwhile, new projects like Apex @ Henderson in the Bukit Merah area, Oxley Bizhub in Ubi Road, and CT Hub 2 in Lavender Street have continued to enjoy keen third-quarter sales.
The highest psf price for a new unit sold in the three months to September was a 3,035 sq ft first-floor factory space that sold for $3.95 million in August at the freehold Apex @ Henderson. This works out to $1,300 psf.
For the year, freehold project AZ @ Paya Lebar topped the price table with a sale at $2,100 psf in June for a 1,098 sq ft unit.
Experts say while prices have generally climbed across the board, surging industrial prices are partly due to new high-priced launches, some of which are less common freehold developments. As benchmark prices are attained, this pulls up the values of nearby resale units, they add.
The Trade and Industry Minister reiterated in April that the Government will ensure there are sufficient measures to keep industrial space affordable.