209 Kallang Bahru is a detached five-storey industrial building located at Kallang Bahru
image: Savills Singapore
209 Kallang Bahru is a detached five-storey industrial building located at Kallang Bahru in the central region of Singapore.
209 Kallang Bahru has a total site area of approximately 24,380 square feet with a gross floor area of approximately 52,797 square feet. Under the Urban Redevelopment Authority’s Master Plan 2019, the land is zoned Business 1, with a plot ratio of maximum 2.5. The property has a JTC leasehold tenure of 60 years, effective from 16 August 1973, with a remaining lease of 13 years.
The immediate vicinity of 209 Kallang Bahru is generally mix in nature comprising of shophouses, commercial complexes, shopping centres, hotels, light industrial buildings and residential developments. Nearby amenities in the area include Jalan Besar Stadium/ Sports & Recreational Centre, NTUC Fairprice (Kallang Bahru), Sheng Siong Hypermarket, and Giant Supermarket (Upper Boon Keng Road). The closest shopping malls are Bendemeer Shopping Mall, City Square Mall, and Serangoon Plaza.
Walking distance to Boon Keng MRT (NE9), Bendemeer MRT (DT23) and Lavender MRT (EW11) stations, the property at 209 Kallang Bahru is also well connected via major expressways including Central Expressway (CTE), Pan Island Expressway (Tuas) and Pan Island Expressway (Changi), KPE and Nicholl Highway.
Sharon Teo, Managing Director, Business Space, Savills Singapore, who is handling the sale of 209 Kallang Bahru, commented: “The property would appeal to any companies looking to have a presence with a premium city fringe locality that is highly accessible islandwide via convenient bus and MRT networks.”
Kallang Bahru is a subzone within the planning area of Kallang, Singapore, as defined by the Urban Redevelopment Authority (URA). This subzone is bounded by Bendemeer Road and Sungei Whampoa in the north; the Kallang River in the east; Kallang Road and Sims Avenue in the south; and Lavender Street in the west.
“Kallang Bahru” is also the name of a two-way road in the area. This road connects the Pan Island Expressway (PIE) in the northeast with Lavender Street in the southwest, with major junctions located at Geylang Bahru and Boon Keng Road. This road is unique as it is one of the few roads in Singapore to have a name without any generic element. The name of the subzone was derived from this road.
The subzone of Kallang Bahru consists mostly of industrial and office developments. Notable places include the Kallang Delivery Base of Singapore Post, Aperia Mall and Victoria Wholesale Centre. Bendemeer MRT station along the Downtown Line is located within this subzone.
The name “Kallang Bahru” first appeared in a street directory as a proposed road in 1969. Meaning “New Kallang” in the Malay language, the road and its surrounding area were seen as an extension of the Kallang settlement. Prior to the construction of the road, the area was a swampland.
Mr Paul Ho, Chief Mortgage Consultant at iCompareLoan, said that despite the property curbs introduced by the Government 2 years ago, the trade tensions between US and China and the uncertainties surrounding the Covid-19 pandemic, Singapore is still an attractive real estate market for investors.
Although the property market exuberance has been curbed to some extent with the global uncertainties and the health scare, Singapore as a property market investment destination still remains among the top – shoulder to shoulder – with other cities in the world like London, New York, Shanghai and Sydney.
“We have to be mindful that there is a lot of excess capital fluidity here and at 1.9 – 2 percent, Singapore has one of the lowest interest rates for home loans in the region,” he added.
The JTC Q2 2020 Industrial property statistics showed this sector is most resilient across the property sectors (retail, office, hotel, residential), amid the global coronavirus (COVID-19) pandemic. The resilience is witnessed by continued warehouse demand supported by the accelerated adoption of e-commerce and government’s stockpiling of essential goods.
Ms Tricia Song, Head of Research for Singapore at Colliers International, commenting on the JTC Q2 2020 Industrial property statistics said, “(despite the resilience) overall industrial rental and price declines were more pronounced in Q2 2020 than in Q1 2020, capturing the ground sentiments and impact of COVID-19 Circuit Breaker measures which started on 7 April 2020. With the rapidly evolving COVID-19 situation, the industrial sector is likely to experience continued pressures on rents and prices, as with other sectors.”
She added that the JTC Q2 2020 Industrial property statistics showed “Singapore all-Industrial property market rents declined 0.7% quarter-on-quarter (QOQ) in Q2, dragged by single-user factory.”
JTC Q2 2020 Industrial property statistics showed business parks held up best but still declined 0.2% QOQ. Despite the weakness in rents, overall occupancy rate, however, rose marginally to 89.4% from 89.2%. Meanwhile, prices of industrial properties saw a decline of 1.1% QOQ, attributing largely to the 1.5% QOQ decline seen in multi-user factories.
Overall, Colliers International is cautious about Singapore industrial market’s outlook for this year, and forecast the general industrial market to remain weak in 2020. Analysing the JTC Q2 2020 Industrial property statistics, Colliers suggested that the business park and high-specs segments could be more resilient, benefiting from Technology sector. It added that the JTC Q2 2020 Industrial property data could lend support to the view that warehouses may see support from the rise in e-commerce driving demand for logistics services, and are also well-positioned for any economic rebound.
“JTC Q2 2020 Industrial property data suggested that the rapidly evolving COVID-19 situation is expected to weigh on the industrial property market,” said Ms Song.