Strata factories reward investors

by Cheryl Tay

Only two of the 618 strata factories deals conducted last year proved unprofitable, according to an analysis by Savills Singapore. Moreover, 36 units (5.8 percent) of the total 618 were bought and re-sold within the year.

By flipping the 618 strata factory units, 99.7 percent of investors made money while only two deals (0.3 percent) incurred a loss. The two units were bought in 2011 and transaction costs and other expenses were not factored into their losses.

Meanwhile, the 616 profitable deals fetched an average profit of S$262,636 (47 percent).

Notably, the biggest gains went to investors who waited the longest before reselling the units. An average of S$406,160 (85 percent) in gains went to investors who bought in 2007 and sold last year.

Those who bought strata factory units in 2009 earned S$366,208 (64 percent), while the 2011 buyers earned S$166,795 (27 percent) on average from selling their units in 2012.

Lastly, those who bought last year and resold in the same period enjoyed a thinner profit margin of S$86,797 on average.Cheryl Tay, Editor of CommericalGuru, wrote this story. To contact her about this or other stories, email cheryltay@allproperty.com.sg Related Stories:Guang Ming Industrial Building up for en bloc saleExpand allowable uses for industrial premises: analystSingPost acquires Lock+Store

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Expand allowable uses for industrial premises: analyst
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Industrial rents to continue holding firm next year: DTZ

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