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Plum industrial site in Playfair Road for sale

Site near future MRT station expected to fetch $65-70 psf ppr

THE Urban Redevelopment Authority has released a site at Playfair Road near the future Upper Paya Lebar MRT Station, and which is on the reserve list of the Government Industrial Land Sales Programme.

The 0.86 ha site is one of four new industrial sites for the reserve list for H2 2007.

The site, which is designated for Business 1 industrial development, has a plot ratio of 2.5 and will be sold with a 60-year lease.

Savills Singapore director of industrial business space Dominic Peters believes that the Playfair Road site could see bids ranging from $65-$70 per square foot per plot ratio (psf ppr) because of its choice location.

‘A developer is likely to build a strata-titled development for sale,’ he added.

Based on the estimated land price and an average construction cost of around $120 psf, Mr Peters believes units could be sold for around $220 psf.

There are currently four sites on the reserve list, including the latest site at Playfair Road.

The demand for industrial sites has appeared to have slowed down together with demand in the rest of the property market. ‘Developers appear to be monitoring the market,’ Mr Peters said.

Recent sales of industrial sites include a site on the confirmed list at Sin Ming Lane which went for about $50 psf ppr or $68.9 million in October.

In August a site with a 30-year lease at Kaki Bukit Road was sold for $72 psf ppr – the highest-ever unit land price for a 30-year leasehold industrial site.

 

Source: Business Times 5 Dec 07

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