Property prices moderate in 1996<\/p>\n
SINGAPORE (AFP): Singapore's industrial property prices, seen
\nas the highest in Southeast Asia, should moderate in 1996 in line
\nwith government moves to ensure the city state remains
\ncompetitive, analysts said yesterday.<\/p>\n
But office rentals and prices in land-starved Singapore are
\nlikely to stay firm, they said.<\/p>\n
Industrial property capital values here have surged some 60
\npercent over the last two years while prime office rentals too
\nhave held up.<\/p>\n
"We do expect industrial property prices to moderate a little
\nbut partly because of the government's stated intention to keep
\nthe international competitiveness of Singapore," Tay Kay Poh of
\nKnight Frank property consultants told AFP.<\/p>\n
Tay said the government had shown concern over rising
\nindustrial property prices which rose by about 40 percent this
\nyear.<\/p>\n
Facing a buoyant manufacturing sector, the darling of the
\nSingapore economy, the government released about 50 hectares (123
\nacres) of state land for industrial use this year and is to
\nrelease a like amount of land next year.<\/p>\n
"I think the impact of all this is not to really bring down
\nprices but simply moderate them because demand has been strong.
\nBut it will take a while for the tightness to be released," Tay
\nsaid.<\/p>\n
State-owned Jurong Town Corp., which prepares industrial land
\nfor use in Singapore, said in a statement over the weekend that
\ndemand for industrial land has been "exceptionally strong."<\/p>\n
Based on latest statistics available, net allocation of
\nindustrial land more than doubled from the previous year to 220
\nhectares (543 acres) in 1994, it said.<\/p>\n
Spencer Neo of Jones Lang Wootton was reported saying by The
\nBusiness Times yesterday that rapid growth in capital values of
\nindustrial land in Singapore in 1995 was "above all, a reflection
\nof the amount of investor funds circulating in the market seeking
\ninvestment opportunities."<\/p>\n
Meanwhile, office rentals and prices in Singapore would edge
\nupwards next year but a charge-up could begin in 1997 when new
\nsupply looks set to fall sharply, market watchers were reported
\nas saying by The Straits Times.<\/p>\n
"We expect rentals of prime office space to hold at their
\ncurrent levels of S$9 to S$10 (US$6.42 to $7.14) per square foot
\nfor the next 12 months before charging up again to S$ 12 per
\nsquare foot sometime in early or mid-1997, and especially in
\n1998," Leong Chi Meng of Vickers Ballas said.<\/p>\n
Analysts expected demand to remain firmly in line with
\nexpected growth of employment in three sectors -- commerce,
\ntransport and communication and finance and business -- and as
\nmultinationals continued to expand in Singapore.<\/p>\n
"Most people agree that office market vacancy rates are still
\nvery low in prime areas and rentals have held up very well. There
\nactually isn't new space coming on stream in the central business
\ndistrict areas in the next 12 months or so," Tay said.<\/p>",
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