Ang Mo Kio industrial site up for tender

Published February 1, 2011


Ang Mo Kio industrial site up for tender
Price could exceed $130 psf ppr, say market watchers

By EMILYN YAP

THE Urban Redevelopment Authority yesterday launched a 60-year leasehold industrial site at Ang Mo Kio Street 62 for sale via public tender.

Market watchers expect to see keen interest in the plot, with its price possibly crossing $120 or $130 per square foot per plot ratio (psf ppr).

The 2.8 hectare site, with a maximum permissible gross plot ratio of 2.5, is on the confirmed list under the H1 2011 government industrial land sales programme.

The land parcel is near Yio Chu Kang MRT station and is zoned for Business 1 development, which makes it suitable for various uses such as light industry, clean industry or telecommunications.

Savills Singapore industrial director Dominic Peters believes that the site could be sold for at least $120 psf ppr, and five or more developers could be interested.

This is the first industrial site to be made available in Ang Mo Kio in a long time, he said. Also, with the government introducing more tightening measures to the residential property sector, 'industrial (properties) would be a target for investors'.

Capital values of industrial property rose last year, driven by strong end-user and investor interest. Developers also bid actively for state industrial sites. In August last year for instance, Oxley Rising paid $158.1 million or $169 psf ppr for a 60-year leasehold plot at Ubi Road 1.

Knight Frank director of business space (industrial) Lim Kien Kim expects the Ang Mo Kio site to fetch at least $130 psf ppr.

He said that the plot has a good location, though its large size might make it more attractive to developers with 'deep pockets'.

Also, cooling measures for the residential sector could have tamed bullish sentiment across the entire property market, he said. While some investors have switched their focus to the commercial sector, the government would also be wary about commercial prices rising too quickly as that would affect Singapore's competitiveness, he pointed out.


Source: www.businesstimes.com.sg