Industrial building on Eunos Ave 3 for sale at $60 mil

Located on an 83,071 sq ft plot of land in Paya Lebar Central, Zhaolim Building is a six-storey high-specification industrial building with a gross floor area (GFA) of about 207,678 sq ft. Redeveloped in 2015, the building has a high ceiling, ample natural lighting and large and regular floor plates, with a typical floor plate spanning about 43,000 sq ft and an average floor-to-ceiling height of about 7m. The building also has large passenger and cargo lifts, alongside a childcare centre and an outdoor sky garden at Level 2.

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Well-connected via the Pan Island Expressway and Kallang-Paya Lebar Expressway and located within walking distance of Paya Lebar MRT Station, the building has many nearby amenities – from NTUC supermarket, to shopping malls like PLQ Mall, Singpost Centre and Tanjong Katong Complex.

Up for sale at a guide price of $60 million, the property presents an enticing opportunity for companies from the electronics and communications, healthcare, information & technology, media, and lifestyle sectors, according to Brenda Ong, executive director of logistics & industrial at Cushman & Wakefield.

“Given the tight supply of quality buildings located within the city fringe, Zhaolim Building stands out as a great option,” she says. The lease of the property is 60-years, with approximately 17 years remaining.

The sale of the building is being conducted via an expression of interest exercise which closes on June 21 at 3pm.

For potential buyers looking to explore opportunities near Zhaolim Building, Eunos Avenue 3 or around Paya Lebar MRT Station, EdgeProp has the latest listings.

Four freehold strata bungalows in Vanda Crescent for sale at $33 mil

Four freehold strata bungalows located off Dunearn Road in the Bukit Timah area of prime District 11 are about to launch for sale. Held by a single owner, the 12,264sqft site will be released for private treaty purchase from the 3rd May, with a guide price of $33million.

The properties, which have a combined built-up area of 19,353sqft, were built in 2009 and are currently rented out with existing tenancies. Each features five en suite bedrooms, its own lap pool, basement level and all are part of a common compound.

Tracy Goh, head of Investment and Collective Sales at the marketing agent PropNex Realty, believes the sale represents a “rare opportunity” for those looking to buy a cluster of freehold strata bungalows within a private and exclusive residential area, which could be especially beneficial for multigenerational families who wish to combine living space without compromising their privacy.

Since 2010, there have been 14 resale transactions in the area, including a nearby bungalow that was sold for $21.5million in September 2022, at a rate of $2,431psf.

Price growth of freehold landed homes in Singapore has remained strong in the last two years, with an increase of 13.3% in 2021, 9.6% in 2022, and 5.9% in 1Q2023. Goh expects this to continue, due to singular supply and stable demand levels.

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The 4 strata bungalows are conveniently located just 500m from Sixth Avenue MRT station, with roads such as Dunearn Road and the Pan-Island Expressway also nearby. Several esteemed schools are also within easy reach, including Raffles Girls Primary School, Methodist Girls (Primary), Nanyang Primary School, Nanyang Girls High School, National Junior College, and Hwa Chong Institution.

The hike in stamp duty fees that was implemented on April 27 is likely to have little affect on potential buyers of the Vanda Crescent strata bungalows, as international buyers are not eligible to purchase landed properties on mainland Singapore and if said buyers are Singapore citizens and first-time buyers, no additional stamp duty will be required.

In summary, these four freehold strata bungalows provide a unique opportunity in a desirable, central location, with potential buyers likely to benefit from continued price growth.

Apac investments in North America reach record high of US$13.9 bil, led by Singapore: Knight Frank

business in Asia-Pacific

Asia Pacific (Apac) outbound investments into North America reached a record high in 1Q2023, with commercial transaction volumes surging by over 400% year-on-year to US$13.9 billion ($18.6 billion). A research report by Knight Frank revealed that out of the total volume, the US received the highest proportion at 58%, with Canada coming in second at 27%.

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Singapore was the biggest Apac investor, accounting for 89% of Apac outflows to North America. GIC had multiple deals in the market, including the US$8.5 billion invested in US REIT Store Capital and its US$3.3 billion purchase of Canada’s Summit Income Industrial Reit – the latter inflating Singapore capital outflows into Canada to an all-time high of US$3.9 billion.

Christine Li, head of research, Asia-Pacific, at Knight Frank, attributes the surge to investor interest driven by the efficiency of price discovery in established and liquid markets such as the US. “In times of crisis, US assets are often seen as a safe haven given the currency stability,” she notes.

Asian sovereign wealth funds largely dominated Apac outbound investments, according to Knight Frank, with their share of total volumes in 1Q2023 amounting to 79%. Retail and industrial assets were the most invested sectors, together accounting for 85% of investment volume.

Li suggests that the increased demand for retail and industrial assets is due to opportunities for repricing in a rising rate environment, combined with less competition.

While outbound investments from Apac to North America was soaring, investments within Apac were quite the opposite. Total volumes in 1Q2023 decreased by 53.6% year-on-year – the lowest since 4Q2011. All markets in the region witnessed a drop in investment activity, with the exception of Singapore.

Transaction volumes in Singapore rose to US$4.3 billion in 1Q2023, compared to US$3.3 billion the year prior. This was mainly due to the Mercatus Co-Operative’s sale of a portfolio of retail assets, which accounted for half of the total investment volume in Singapore.

On the other hand, investments in Seoul nosedived by 80% year-on-year, reaching its lowest level since 1Q2015 with a transaction volume of US$2.8 billion. Japan’s foreign investments rose, but overall transaction volume still dipped 17% y-o-y to US$9.4 billion.

The banking sector’s instability continues to impede capital deployment in Apac, but Neil Brookes, global head of capital markets at Knight Frank, is hopeful that gradual adjustments in seller expectations and increased liquidity and activity in the second half of the year will lead to increased investor demand.

According to Brookes, ultra-high-net-worth investors with their unique investment goals and resilient to financial headwinds are expected to play a vital role in capital deployment, replacing institutional buyers who are affected by the higher cost of capital.

Shophouse transaction volume fell in 1Q2023 but average transaction value grew: Huttons Asia

Shophouse transactions in Singapore dropped in 1Q2023, with only 29 caveated shophouses being sold. Of those transactions, the total value for the quarter amounted to $281.8 million. According to a May 1 research report by Huttons Asia, the number of transactions was 12.1% lower compared to the previous quarter, and 44.2% lower compared to the same period the year prior. The average transacted value per shophouse was 8.1% higher q-o-q.Following the Lunar New Year festivities, there was a slow start to the quarter with only five shophouse transactions recorded in January. However, the number of transactions gradually picked up, with nine and 15 recorded in February and March respectively.The top two shophouse transactions during the quarter included the sale of six freehold shophouses on Serangoon Road for $62.5 million and the sale of a 999-year shophouse at Boat Quay for $37 million. The Serangoon Road shophouses were purchased by the Singapore Maritime Officers’ Union, and the Boat Quay shophouse was bought by Tai Tak Estates, the holding firm of the family of late banking tycoon Ho Sim Guan.

Median rents of shophouses in 1Q2023 grew 1.5% q-o-q islandwide, with the highest increase being seen in District 15, where median rents surged 15.8% q-o-q to reach $5.49 psf per month. Shophouses tend to remain popular with investors for wealth preservation, and the Rochor planning area encompassing Little India and Jalan Besar was the most popular, accounting for 31% of the transactions in 1Q2023.

Singaporean condominiums are a status symbol of success and wealth, and are seen as the step up from HDB Singapore Condo flats. As an investment, condos have greater potential to generate income than HDB flats.

Lee Sze Teck, senior director of research at Huttons, believes demand could pick up in the coming months, and prices could trend upwards in 2023. The limited supply of shophouses over time will drive up their value, providing a good form of wealth preservation for ultra-high-net-worth individuals and family offices. This could be further bolstered by the recent cooling measures announced on April 27, which includes a hike in Additional Buyer’s Stamp Duty for foreigners, potentially redirecting some demand to the shophouse market.