Singapore is ranked first for having the most open economy for international trade and investment and has been ranked second for 16 consecutive years as the city having the best possible potential for investments.
Singapore which was previously a British colony, after gaining independence, adopted a state led drive for industrialization and opened up to foreign direct investment and created a modern economy. However in the light of the global recession in 2001, the country faced a contraction in its GDP by 2.2%. But over the years, Singapore recovered from the slump and the contraction was reduced to 0.8%. The government has made it their sole objective to bring the economy on the right track and as a result has taken up some drastic measures. With the incorporation of the government’s cooling actions in an attempt to better the economic condition, investors in the property market in Singapore are becoming more keen towards industrial properties. It is now an open question is this where the money is now since there is a substantial rise in the prices, sales and rents?
According to a recent statement released by CB Richard Ellis (CBRE), rents, sales and prices for industrial properties have all gone up quite considerably. Capital values for 60 year lease hold strata-titled factory arenas have shot up to $289 per square feet (psf) for ground floor units and $213 psf for the upper floor units, which is at least 5% more than the previous quarters’ prices. The prices for free-hold strata –titled warehouse spaces have also witnessed an increase of 5%. The ground floor units cost $449 psf while the price of the subsequent floors has been settled at $392 psf.