Published 29 April 2011
The Business Times
By Emilyn Yap
OXLEY Holdings has set a new price benchmark in the Ubi area with its new 60-year leasehold industrial project, Oxley Bizhub.
In a soft launch over the weekend, the developer sold nearly 60 per cent of the 364 units released at an average price of $677 per square foot of strata area. Some buyers bought multiple units, and most buyers are Singaporeans.
Prices at Oxley Bizhub are said to be higher than those at other 60-year leasehold properties in the area, which go up to slightly over $400 psf.
Oxley Bizhub at Ubi Road 1 – near Tai Seng MRT station and MacPherson MRT station – will comprise three podium blocks and four tower blocks.
There will be 728 strata-titled factory and warehouse units in total, ranging from 915 sq ft to 3,423 sq ft in size.
What makes Oxley Bizhub different from most other strata-titled industrial properties is the recreational facilities it will offer, which include a swimming pool and gymnasium.
‘The market’s positive response to our first industrial project testifies to the good market demand for such uniquely-designed, lifestyle-oriented industrial property,’ said Oxley Holdings CEO and executive chairman Ching Chiat Kwong.
Industrial property market players have been keeping a close watch on Oxley Bizhub, to get a sense of how buyers would respond to the higher prices.
‘I think it’s quite a healthy take-up rate considering that they are breaking records,’ said Colliers International industrial director Tan Boon Leong.
Prices of industrial properties in the area are likely to rise ‘a notch or two’ as a result, Mr Tan said, but he does not expect them to match levels at Oxley Bizhub because the project is new and has a different concept.
The question among market watchers now is how much rental yields at Oxley Bizhub could be. Assuming a monthly rent of $2.50 psf – which is not uncommon in the Ubi area – the yield based on the average price of $677 psf would be around 4.4 per cent.
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