A FREEHOLD industrial property at 18 Genting Road within the MacPherson industrial estate has been sold for S$12 million, said Savills Singapore on Friday (Jan 5).

This translates to a rate of S$840 per square foot per plot ratio (psf ppr).

The selling price is “close to the guide price”, said Savills, without revealing details.

Located in District 13, the land plot has an area of 5,700 square feet (sq ft), housing a five-storey building with gross floor area of 11,749 sq ft. 

The identity of the seller was not disclosed. The Business Times understands the buyer is a local company that intends to use the property itself. The site is zoned for clean or light industry use. 

The industrial investment market has seen a flurry of activity recently with several freehold assets sold or launched for sale over the last few months.

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

In November last year, a freehold property at 50 Playfair Road was sold for S$81.18 million. This amounted to a rate of S$895 psf ppr for the site. The buyer, who was not identified, intends to use the site for a food factory.

Two months earlier, Cushman & Wakefield had put up for sale a freehold development site for a food factory at S$90 million, including land betterment charges of S$3.4 million. This worked out to about S$738 psf ppr, according to Cushman & Wakefield. The development at 2C Mandai Estate sits on land of about 50,630 sq ft with a gross plot ratio of 2.5, and potential gross floor area of 126,575 sq ft. 

While investors are continuing to look out for opportunities in a market that has run up significantly, rental and price growth are expected to moderate in light of slowing global growth and weakness in the manufacturing sector. 

According to the JTC All Industrial index, rents rose by 2 per cent in Q3 2023, down slightly from the 2.1 per cent growth in Q2 2023. Prices of strata industrial space increased by 1.4 per cent in Q3, dipping slightly from the 1.5 per cent growth in the previous quarter. 

For 2024, Savills is projecting zero growth in rents for multiple-user factories, while the warehouse segment may see 0 to 3 per cent growth.

Multiple-user factory space prices are expected to rise 4 per cent this year, while prices of warehouses may see 5 per cent growth, it said.