Page 73 - ar2013.pdf

Independent Market Study
(Singapore)
By Colliers International
WHAT WE INVEST IN
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Singapore’s economic growth slowed down for the second
consecutive year in 2012. According to statistics released
by the Ministry of Trade & Industry (“MTI”), Singapore’s real
Gross Domestic Product (“GDP”) growth slowed to 1.3%
year-on-year (“YoY”) in 2012, from 5.2% YoY in 2011. This
was largely due to the weaknesses in externally-oriented
sectors like manufacturing and wholesale trade.
The MTI expects Singapore’s economic outlook for 2013 to
be cautiously optimistic. While real GDP growth is expected
to improve from 1.3% in 2012 to between 1% and 3% in
2013, the MTI has warned that actual growth may fall below
its forecast should any downside risks materialise.
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Some recent Government policies and measures pertaining
to the Industrial property market include:
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at more affordable prices, the Government will continue to
cap the land tenure of industrial sites to be released under
its Industrial Government Land Sales (“IGLS”) programme
for the first half of 2013 at 30 years. Smaller sites and
sites with shorter land tenure of about 22 years, targeted
at the small and medium enterprises (“SMEs”) will also be
released.
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enterprises who require larger industrial spaces, successful
bidders of selected industrial sites sold under the IGLS
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minimum number of large factory units.
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advertise the use of the property as approved by the
Urban Redevelopment Authority (“URA”). For example,
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Business 2 (“B2”) 2 under URA’s Master Plan 2008 are
approved and allowed primarily for industrial use (e.g.
manufacturing and warehousing activities). Such industrial
properties should not be marketed for “business” (which
may be misinterpreted as offices) or for “offices” which are
not allowed in industrial buildings.
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remain applicable. These include prohibition of strata
subdivision for selective sites near mass rapid transit
stations or as decided by the Government for a period
of 10 years from the date of the issue of Temporary
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area (“GFA”) of 150 sqm on strata units in a multi-user
developments as well as stipulated numbers of goods
lifts and loading bays in accordance to the maximum
permissible GFA of the land parcel for multi-storey
industrial developments3.
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GLS sites to five years on sites with a maximum
permissible GFA of less than 50,000 sqm and seven
years on sites with a maximum permissible GFA of
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remains relevant.
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of industrial premises for religious activities, announced
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are limited to only certain days in a week and occupy
only part of the industrial premises within the ancillary use
quantum. Additionally, existing religious organisations that
are using factory units for religious uses on an exclusive
basis will be granted a three-year grace period with effect
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To rein in short-term speculative activity, the Government
introduced a Seller’s Stamp Duty (“SSD”) of 15%, 10% and
5% on industrial properties sold within one, two and three
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While it will take some time for the effects of the SSD to
filter through the industrial property market, there may be
an immediate knee-jerk reaction in the strata sales market
as both buyers and sellers step back to assess the impact.
However, unlike speculators, end users and investors with
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affected by the SSD and will continue to provide some
support to the strata sales market. As such, the industrial
property market is expected to be more stable in 2013 with
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ANNUAL REPORT FY12/13 69