The Arden will be previewed by Qingjian Realty on July 29, with pricing starting at $1,688 psf

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Novo Place facilities

In 2Q2023, the total occupancy rate of that industrial property market recorded a modest rise by 0.3 percentage points over the previous quarter, resulting in 89.1%, according to the data published on July 27 by JTC in July. The increase was fueled by the multi-user factory and warehouse segments, where new demand surpassing supply.

Novo Place facilities and spacious family-friendly units with a maximum height of 60-70 meters.

“Although the majority of manufacturing clusters contracted in June, the occupancy levels were boosted by the demand from the transportation Engineering cluster” says Leonard Tay director of research and analysis at Knight Frank Singapore. Tay adds that the demand of the cluster for warehouses for storage of inventory and materials in the face of disruptions to supply chains around the world led to the 0.7 percent increase in warehouse occupancy to the level of 91%.

On a year-to-year basis industrial property occupancy decreased by 0.9% y-o-y. JTC is blaming this on an impressive pipeline of new constructions in the last year, with the total stock available increasing by 12.9 million sq ft exceeding the 6.5 million square feet growth in the total stock occupied.

As a result of the growth in occupancy, the rates for industrial properties recorded an increase of 2.1% increase q-o-q in 2Q2023. This marks the 11. consecutive period of increase as rents increased to a cumulative 14.5% from the trough in 3Q2020, according to Tricia Song who is CBRE’s chief of research Southeast Asia. The quarterly increase is less in comparison to those of 2.8% logged in 1Q2023.

The rent increase was driven by the multiple-user segment of factories that grew by 3% in the last quarter, and was then warehouse rents that increased by 1.4% q-o-q. In a year-over-year base, rents for industrial increased by 9.4%.

The industrial property prices also increased during the quarter, increasing 1.5% q-o-q. Lee Sze Teck, senior director of data analytics at Huttons Asia, note that this is in line with the increase that was recorded in the 1Q2023 period. “The price growth appeared to have slowed down since investors resisted increasing prices against a shaky economic environment and a persistently high interest rates,” he comments. In a year-on-year basis the price were up 6.9%.

At the end of June, 6.5 million square feet of industrial space was anticipated to be finished in 2H2023. The upcoming supply of space is single-used factory space comprises around 60% and warehouse space accounts for 22% and seventeen% is made up of multiple-user factories and business park spaces.

In the future, JTC expects demand for industrial spaces to continue to grow despite the uncertainty of the economy. “Nevertheless the new construction continues to come in and occupancy rates rise, they are likely to remain steady,” it states in its most recent quarterly report.

The Knight Frank’s Tay believes that rents and industrial prices will remain stable for the remainder season. “As an innovative open, innovative and neutral business center, Singapore’s basic features provide international companies with a safe flight and a flight-to-quality location for investment and expansion that can boost growth when stability is restored globally,” Tay explains.

Lam Chern Woon, head of research and consulting at Edmund Tie, cautions that the manufacturing industry – which has seen production declines in a yearly basis for nine months from June to June has shown no indications of stabilisation since businesses are still facing rising inflation, as well as higher cost of financing and labour. “We also anticipate trade tensions to escalate and affect the global economy through 2024 in the event that the US is stepping up its rhetoric against China during a election year for the president,” he adds.

He is nevertheless optimistic about the sector of warehouses, that he believes will generate an annual increase in rental of 6-% up to 7%. This is backed by the shortage of high-quality warehouses and facilities, as and a rising demand. “Notably the growing demands from Third-Party Logistics (3PLs) businesses such as life sciences, pharma, and food manufacturing industries is a key factor in driving the need to increased logistical services,” he says.

He also has a positive perspective for the future of high-tech industrial space that are bolstered by the new setups by semiconductor and biotechnology firms as well as the steady interest from technology and Life Science occupiers.

Qingjian Realty will commence previews for The Arden, its exclusive condo located on Phoenix Road, off Choa Chu Kang Road. It will be revealed at a preview party that will run between July 29 and August 7.

The Arden comprises a total of 105 residences, with units ranging from a two-bedder of 657 sq ft to a four-bedroom-plus-study apartment measuring 1,389 sq ft, which includes a flexible layout that the developer has dubbed “CoSpace”. The layout permits homeowners to customize their living spaces to their changing needs.

A typical unit are expected to have a ceiling of 3.2m and penthouses have a ceiling of 4.6m. The units will cost $1,688 per sq ft.

It is situated on located on the site that was the site of the previous Phoenix Heights condo, The Arden is a four-minute walk from Phoenix LRT Station. Phoenix LRT Station and a nine-minute walk to the Bukit Panjang Integrated Transport Hub. “The Arden is in a ideal location to enjoy the advantages of living in close proximity to the soon-to-be Jurong Innovation District (JID) as well as the Jurong Lake District (JLD). With its affordable price, it’s one of the cheapest new developments in the suburban area,” says Marcus Chu the director of ERA Singapore.

Ismail Gafoor, CEO of PropNex agrees. “We believe that the prices for The Arden are competitive and will appeal to a wide variety of buyers, especially considering that a lot of new launches in The Outside Central Region (OCR) have currently trending over $2,000 per square foot in the past year,” he says.

Mark Yip, CEO of Huttons Mark Yip, CEO of Huttons of the 16,000 homes for sale in the private sector there are only 2,000 located in the OCR out of which 464 are located in District 23 in which The Arden is situated. He believes that the project could be able to benefit from the soaring demand for houses within The Choa Chu Kang neighbourhood.