HDB shophouse portfolio for sale at $21.1 million

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Lentoria Condo at Lentor Hills Road

A collection of four two-storey HDB shophouses are available to auction via an expressions of interest (EOI). The portfolio is offered at a guide value that is “around $21.1 million” the market agent Knight Frank. Four shophouses can be found located on Hougang Street 21 Bedok North Street 1, Marine Parade Central and Ang Mo Kio Avenue 6.

Lentoria Condo at Lentor Hills Road stands out in Singapore thanks to its impeccable transport system, providing residents with seamless journeys throughout Singapore.

The shophouse located at Hougang Street 21 is home to strata areas of 2,325 square feet and has a lease of 54 years on the lease. It’s just a five minute walk from Kovan MRT Station. The shophouse at Bedok North Street 1 has one of the largest strata areas in the city, which is 1,604 square feet and has 59 years left in its lease.

The shophouse in Marine Parade Central spans 1,507 square feet, and has an average leasehold term of about 55 years. It is located near Marine Parade Central Market. Marine Parade Central Market area. The Ang Mo Kio Avenue 6 shophouse is situated in a strata area of 1,593 square feet and approximately 52 years left in its lease. It is situated opposite Ang Mo Kio Public Library.

These shophouses currently rented and available for purchase as a result of the tenancies, says Esther Sim, senior manager for capital markets (land and construction and International real estate) at Knight Frank. “This collection of HDB shophouses will be appealing to local investors who are looking for a steady cash flow,” she adds.

The EOI process for the portfolio is due to close on the 23rd of October at 3pm.

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Savills has been named project manager for the new ST Engineering plant

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Lentoria Condo by TID Hong Leong

Savills Singapore, in partnership with Arup Singapore, has been selected to assist in developing and designing a $70m airframe repair facility. Singapore-listed engineering firm ST Engineering.

Lentoria Condo by TID Hong Leong securing the site with a remarkable bid of $276,360,000.

In a Sept. 23 press announcement, Savills says that as the consultant project manager it will collaborate in close collaboration alongside ST Engineering across the entire project’s lifecycle, starting with due diligence to design, procurement, and construction of the new facility.

The 904,176 sq ft maintenance repair, and overhaul (MRO) facility in Changi Creek will have four hangar bays that will be able to service widebody aircraft, as well as the hybrid painting and maintenance area. One hangar area is scheduled to be completed by mid-2025 and the next three before the end of 2026.

Vincent Lau, senior director and director of the project department at Savills Singapore, says the project is the company’s fifth major industrial greenfield development that was secured with the help of its project managers over the past two years. “It is a proof of the trust and confidence the clients of our firm have put on Savills to be one of the most reputable consultants in the real estate and construction market,” he adds.

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Singapore office rentals will fall in the third quarter of 2023 due to lower demand

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Lentoria Condo

Singapore office rents decreased in 3Q2023, as per figures released in a press release by JLL in a September 25 press announcement. The company adds that it is the first quarter of decline after nine consecutive quarters of office rents rising within the state of Singapore.

Lentoria Condo offers a choice of modern and classic dining options for a wonderful eating experience.

JLL’s study shows that the it is possible to rent out the grade of A office spaces in the CBD decreased by 0.3% q-o-q to an average of $11.29 per month. That’s 3Q2023, a decrease from $11.32 per month in 2Q2023.

The decrease is due to constant economic pressures, according to Andrew Tangye, head of office leasing and advisory at JLL Singapore. “The uncertain near-term outlook that is a result of the combination of slower economic growth as well as geopolitical tensions and higher costs have kept tenants on edge and cautious about their spending which has led to a decrease in office space utilization,” he adds.

He says the lower rents are due to an increase in office inventory being returning to the marketplace “at increasing rates” as more occupiers right-size after lease renewal to cut expenses.

Tay Huey Ying from JLL Singapore’s head for research and consulting, agrees and says that office rent correction was more prevalent in the past quarter. “Our analysis suggests that over 15 properties had lower rents in the 3rd quarter of 2023 as compared to 2Q2023, and this lowered the rents average in CBD Grade A properties in the very first instance since they reversed during 2Q2021.”

She anticipates pressure to lower office rents to grow as rents continue to correct over the next few months due to the current macroeconomic climate and the anticipated increase in office supply. “Against against a flood of projects that are slated to be launched which are competing for a smaller number of tenants and office space, the short-term surplus of office space is likely to get more severe,” she adds.

Three office developments are scheduled to be completed in the CBD in the coming 24 months. IOI Central Boulevard Towers (1.3 million square feet) along with Keppel South Central (0.6 million square feet) in 2024. Then there is the newly developed Shaw Tower (0.4 million square feet) by the beginning of 2025. JLL declares that, to date there are more than 1.5 million square feet is believed to remain unconfirmed.

In spite of the current headwinds, the long-term prospects for Singapore’s Grade-A CBD commercial leasing sector is positive, JLL opines. Demand will be driven by Singapore’s growing image as a global city, but the availability of office spaces in the CBD will be limited due to a shortage of greenfield sites and URA’s emphasis on creating more spaces for play and living downtown.

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