Post by TK REAL ESTATE

PropertyAtlas Newsroom — Singapore REITs & Developers www.propertyatlas.sg 𝐖𝐞𝐞𝐤 𝐨𝐟 𝟖 𝐉𝐮𝐧𝐞 𝟐𝟎𝟐𝟔: 𝐒𝐞𝐫𝐚𝐧𝐠𝐨𝐨𝐧 𝐆𝐚𝐫𝐝𝐞𝐧 𝐒𝐡𝐨𝐩𝐡𝐨𝐮𝐬𝐞 𝐐𝐮𝐚𝐝𝐫𝐮𝐩𝐥𝐞𝐬 𝐭𝐨 𝐒$𝟏𝟓𝐌; 𝐅𝐫𝐞𝐞𝐡𝐨𝐥𝐝 𝐅𝐚𝐜𝐭𝐨𝐫𝐢𝐞𝐬 𝐂𝐥𝐢𝐦𝐛 𝐖𝐡𝐢𝐥𝐞 𝐒𝐡𝐨𝐫𝐭 𝐋𝐞𝐚𝐬𝐞𝐬 𝐒𝐥𝐢𝐝𝐞 The latest URA REALIS release brought 56 commercial and industrial caveats worth S$130.0 million. It was an unusually industrial batch — 47 of the 56 were factories or warehouses, partly because no industrial caveats were released the week before, so two weeks of activity landed in one drop. The standout was a 999-year shophouse on Serangoon Garden Way that sold for S$15.0 million, four times the S$3.1 million its owner paid in 2005 — a S$11.9 million gain compounding at 7.8% a year over 21 years. But the structural read is tenure: 🏭 𝐓𝐞𝐧𝐮𝐫𝐞 𝐬𝐩𝐥𝐢𝐭𝐬 𝐭𝐡𝐞 𝐦𝐚𝐫𝐤𝐞𝐭 Two single-user factories tell the whole story. A freehold factory on Tagore Industrial Avenue sold at S$1,864 psf; a larger Senoko factory — the week’s biggest caveat at S$19.7 million — went for S$366 psf on a 19-year lease. Same building type, a 5.1x gap, almost all of it tenure. 📈 𝐅𝐫𝐞𝐞𝐡𝐨𝐥𝐝 𝐚𝐧𝐝 𝐥𝐨𝐧𝐠 𝐥𝐞𝐚𝐬𝐞𝐬 𝐜𝐨𝐦𝐩𝐨𝐮𝐧𝐝𝐞𝐝 Beyond the shophouse, recent strata buys with healthy 60-year balance ran hard: Northland +12.8%/yr, Zervex +8.3%, Midview +7.9%, Northstar +8.0%. 📉 𝐒𝐡𝐨𝐫𝐭 𝐥𝐞𝐚𝐬𝐞𝐬 𝐛𝐥𝐞𝐝 REVV on Corporation Drive — a 30-year lease from 2019 — sold at S$550k, nearly half the S$1.03 million paid in 2021 (−13.3%/yr). At West Connect, an investor exited two units bought together in 2021, both at a loss. 🏢 𝐂𝐁𝐃 𝐨𝐟𝐟𝐢𝐜𝐞 𝐬𝐭𝐫𝐚𝐭𝐚 𝐬𝐭𝐚𝐲𝐞𝐝 𝐬𝐨𝐟𝐭 SBF Center on Robinson Road sold S$489k below its 2019 price; Vision Exchange gave up S$174k. A week after PGIM closed its 108 Robinson exit, Robinson Road office strata is still the weakest pocket on the board. 𝐁𝐲 𝐭𝐡𝐞 𝐧𝐮𝐦𝐛𝐞𝐫𝐬: ✦ 56 caveats, S$130.0 million — 47 industrial, 9 commercial ✦ 44 paired resales: 38 gains, 6 losses ✦ Top gain: Serangoon Garden shophouse +S$11.9 million (+7.8%/yr, 21yr) ✦ Largest caveat: Senoko single-user factory, S$19.7 million ✦ Sharpest loss: REVV, −13.3%/yr on a 30-year lease The investment case: in Singapore industrial strata, the lease clock is the single biggest driver of return — freehold and long balance compound, short leaseholds decay. Watch the spread between freehold and sub-30-year psf; that gap is the leading indicator. #CommercialProperty #IndustrialProperty Source : URA REALIS