Industrial sales boilover in Singapore

The Singapore property market is set for record investment industrial sales eclipsing $S3 billion in 2007.

The level of industrial investment sales, which reach the $S1.9 billion mark in 2006, is anticipated due to the divestment of properties by Singapore‘s largest industrial property owner JTC.

JTC is expected to divest some 1.7 million sqm of industrial factories, business parks and warehouses into a REIT with the remainder individually sold off to other investors.

According to commercial agents Colliers International, offshore and local REITs are expected to significantly lift their presence in the industrial investment sector this year.

Colliers believe more REITs are being readied for listing on the Singapore Stock Exchange. Only recently Australian based property group MacArthur Cook Industrial REIT listed on the Singapore exchange.

Funds from Australia, Hong Kong, the UK and the Middle East are all heading to Asia looking to spend up big in Japan, Singapore, Thailand and Hong Kong.

According to Singapore based analysts, industrial and offices are the main targets, however, industrial investments are the favoured fare due to better rental yields and greater increase in capital gains.

Offshore investment groups have already bought into offices such as Temasek Tower and apartments like Horizon Towers this year.

Australian Property Journal