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by Cheryl Tay
The average transacted prices for new strata units in the primary market slightly decreased in Q3 2012 from the encouraging prices in Q2, according to Knight Frank’s Quarterly Research Bulletin for the industrial sector.
The price drop was most evident in projects across industrial clusters, including Kaki Bukit-Ubi, Macpherson, Woodlands-Sembawang-Admiralty and Paya Lebar.
The price growth for resale strata industrial units in the secondary market eased in Q3, following the government’s announcement that it would offer only 30-year leasehold sites under the Government Land Sales (GLS) Programme.
Q3 saw a quarter-on-quarter price increase of 3.8 percent, a significant drop from the 28 percent quarter-on-quarter jump in Q2. The resale deals for 30-year leasehold strata units took place mainly in the Sembawang Planning Area.
Meanwhile, 60- and 99-year leasehold and freehold industrial properties saw a respective price growth of 12 percent, three percent and eight percent.
Most of the transactions involving 60-year leasehold sites were in the Planning areas of Geylang, Clementi and Bishan. Deals for 99-year leasehold sites were limited to Pantech Business Hub (pictured), while freehold transactions were mainly in the Planning Areas of Toa Payoh and Geylang.
Knight Frank added that rents in the Macpherson and Clementi-Bukit Batok industrial clusters were stagnant while rents in high-spec factory and business park spaces enjoyed 2.4 percent and 0.7 percent increases in Q3.
Moving forward, “it is anticipated that price growths for new sale and resale industrial properties could moderate within the next two to three quarters, in view of the cautious market sentiment amid global economic uncertainties.”
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