SINGAPORE’S INDUSTRIAL PROPERTY REVOLUTION

While the Lion City’s residential property market is seeing a drop in demand and prices, its industrial property sector is showing signs of stabilisation signalling an opportune time for institutional investors to buy up industrial REITs.

Office buildings located at downtown in Singapore.

Singapore’s red-hot residential property market appears to have fizzled out while its industrial property sector is now picking up steam, according to the third quarter data from the Urban Redevelopment Authority (URA) and analysts.

URA’s statistics showed that prices of private residential properties increased by 0.5 per cent in the third quarter of 2018 to reach 149.7 points, compared with the 3.4 per cent increase in the previous quarter.

Indeed, prior to the Singapore government’s announcements that it was increasing the Additional Buyer’s Stamp Duty (ABSD) rates and tightening loan-to-value (LTV) limits on residential property purchases in July this year, the Lion City’s residential property market was going through an en bloc fever with many deals going under the hammer.

Some notable collective sales concluded in the first half of 2018 were Pearl Bank Apartments and Park West which was sold for S$728 million to CapitaLand and S$840.89 million to SingHaiyi Gold Pte Ltd respectively.

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