S'pore tempts overseas property developers
S'pore tempts overseas property developers
SINGAPORE (AFP): Singapore invited overseas developers yesterday to explore opportunities in this land-short city-state and offered to be a strategic partner in joint ventures elsewhere in the Asia-Pacific region.
"I welcome you to exploit the tremendous opportunities in Singapore and in the Asia-Pacific region," National Development Minister Lim Hng Kiang told a property sector conference.
He said Singapore's understanding of the region and government-level contacts and cooperation with countries like China, Indonesia and Vietnam were among factors which made it an ideal partner.
"Let Singapore be your springboard to this dynamic region," Lim said.
The minister noted what he called "some correction and consolidation" underway in the Singapore property market after a decade-long bull run which saw real-estate prices appreciate sharply.
The government has in the past year imposed credit and tax curbs to cool an overheated private property market and drive out speculators, and announced measures to reform the public housing system.
Over the last decade, value of office space in the island increased about 14 percent per year on average while private residential property values have appreciated by 17 percent annually, Lim said.
The value of construction contracts last year totaled S$19 billion (US$13.57 billion), up from four billion dollars in 1986.
Lim attributed the strong growth over the decade to 1996 to comprehensive, long-term plans for physical development, steady release of commercial, industrial and residential land for development, and Singapore's status as a regional hub.
"Singapore's growth as a global trading and financial hub has contributed significantly to the development of the real estate industry," he said. "Foreign real estate companies have been actively tendering for land in our land sales programs."
The real-estate industry could look forward to more "tremendous growth opportunities" here, Lim said. Singapore's development plans include a new downtown which will double commercial space, a waterfront township and a new entertainment district, he said.
Lim said business parks with back-up facilities for "knowledge-intensive" industries and warehouses to support Singapore's ambition of becoming a regional logistics hub hold out other opportunities for developers.