18 Genting Road Industrial Property Sold

An industrial property located at 18 Genting Road within the MacPherson industrial estate has recently been sold for S$12 million.

The land sale price, which closely aligns with the guide price, translates to a rate of S$840 per square foot per plot ratio (psf ppr).

The property, situated in District 13, occupies a land plot of 5,700 square feet and features a five-storey building with a gross floor area of 11,749 sq ft.

While the seller’s identity remains undisclosed, it is understood that the buyer is a local company planning to utilize the property for its own use. The site is designated for clean or light industry use.

This transaction is part of a recent surge in the industrial investment market, which has seen several freehold assets being sold or launched for sale in the past months.

Notably, the top floor of the freehold Amtech Building in the Sin Ming area was put up for sale earlier in the week for S$15.4 million, equivalent to S$1,150 psf on strata area.

Additionally, in November of the previous year, a freehold property at 50 Playfair Road was sold for S$81.18 million, amounting to a rate of S$895 psf ppr. The buyer, who remains unidentified, intends to develop the site into a food factory.

Another significant listing included a freehold development site for a food factory, offered at S$90 million, which includes land betterment charges of S$3.4 million.

This equates to about S$738 psf ppr. The development, located at 2C Mandai Estate, sits on approximately 50,630 sq ft of land with a potential gross floor area of 126,575 sq ft.

Despite the market having experienced significant activity, a moderation in rental and price growth is anticipated due to slowing global growth and challenges in the manufacturing sector.

According to the JTC All Industrial index, rent increases saw a slight decrease from 2.1 percent growth in Q2 2023 to 2 percent in Q3 2023.

Similarly, prices of strata industrial space rose by 1.4 percent in Q3, a slight dip from the 1.5 percent growth observed in the previous quarter.

Looking ahead into 2024, expectations include zero growth in rents for multiple-user factories, while the warehouse segment may experience a growth ranging from 0 to 3 percent.

Price rises are anticipated as well, with multiple-user factory space prices expected to increase by 4 percent and warehouse prices potentially growing by 5 percent.