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19-11-12, 17:08
http://www.straitstimes.com/archive/saturday/premium/singapore/story/industrial-land-prices-and-rents-still-competitive-20121117
Industrial land prices and rents still competitive
This is despite rising land costs for businesses: Lim Hng Kiang
Published on Nov 17, 2012
By Robin Chan Political Correspondent
DESPITE rising land costs for businesses, Singapore's industrial land prices and rents continue to be competitive against those of neighbouring countries, said Minister for Trade and Industry Lim Hng Kiang yesterday.
In fact, land rent, which affects most small and medium-sized enterprises (SMEs), stayed flat from 2002 to 2007, after which it has risen by about 30 per cent, he added.
Industrial land prices, however, have gone up very sharply, he said. The price of industrial land has increased by 60 per cent since the start of last year.
Still, after tracking "our competitiveness very closely in terms of our land prices and land rentals vis-a-vis alternatives... we continue to feel that our land prices and rentals are competitive", he told Parliament.
Mr Lim was replying to Mr Inderjit Singh (Ang Mo Kio GRC), who had asked how the Government could keep industrial land affordable, and whether investors speculating in the market were driving up the land prices.
Mr Singh, a businessman and a member of the Finance and Trade and Industry Government Parliamentary Committees, rose five times to press the minister on the issue.
Business associations and economists have called for measures to ease rising land costs for businesses, which are already suffering a manpower squeeze following the tightening of the foreign labour tap.
Some observers have suggested that foreign investors, reined in repeatedly by the Government's cooling measures in the residential property market, could be pouring money into commercial and industrial property and driving up prices.
Others have blamed the sale of some land by industrial landlord JTC to private developers, who want to maximise returns on their real estate investment trusts (Reits).
But Mr Lim noted that of the 60 per cent of industrial land that is rented out, 27 per cent is owned by "big Reits or big developers", which is where foreign investors might be classified, and "is not a very big percentage".
He said the Government does not track whether investors who buy industrial land are foreign or local, but it is monitoring the situation and would "have to start collecting data".
He also said the Government will not consider re-owning JTC land, as it made up just 20 per cent of all industrial land.
Previously, "JTC tenants have a very unfair advantage in that they're getting subsidised rent from JTC and it's not a level playing field", he said. "So... we have decided to get out and it took us several years to stage the divestment such that it has minimal impact on the sector."
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Industrial land prices and rents still competitive
This is despite rising land costs for businesses: Lim Hng Kiang
Published on Nov 17, 2012
By Robin Chan Political Correspondent
DESPITE rising land costs for businesses, Singapore's industrial land prices and rents continue to be competitive against those of neighbouring countries, said Minister for Trade and Industry Lim Hng Kiang yesterday.
In fact, land rent, which affects most small and medium-sized enterprises (SMEs), stayed flat from 2002 to 2007, after which it has risen by about 30 per cent, he added.
Industrial land prices, however, have gone up very sharply, he said. The price of industrial land has increased by 60 per cent since the start of last year.
Still, after tracking "our competitiveness very closely in terms of our land prices and land rentals vis-a-vis alternatives... we continue to feel that our land prices and rentals are competitive", he told Parliament.
Mr Lim was replying to Mr Inderjit Singh (Ang Mo Kio GRC), who had asked how the Government could keep industrial land affordable, and whether investors speculating in the market were driving up the land prices.
Mr Singh, a businessman and a member of the Finance and Trade and Industry Government Parliamentary Committees, rose five times to press the minister on the issue.
Business associations and economists have called for measures to ease rising land costs for businesses, which are already suffering a manpower squeeze following the tightening of the foreign labour tap.
Some observers have suggested that foreign investors, reined in repeatedly by the Government's cooling measures in the residential property market, could be pouring money into commercial and industrial property and driving up prices.
Others have blamed the sale of some land by industrial landlord JTC to private developers, who want to maximise returns on their real estate investment trusts (Reits).
But Mr Lim noted that of the 60 per cent of industrial land that is rented out, 27 per cent is owned by "big Reits or big developers", which is where foreign investors might be classified, and "is not a very big percentage".
He said the Government does not track whether investors who buy industrial land are foreign or local, but it is monitoring the situation and would "have to start collecting data".
He also said the Government will not consider re-owning JTC land, as it made up just 20 per cent of all industrial land.
Previously, "JTC tenants have a very unfair advantage in that they're getting subsidised rent from JTC and it's not a level playing field", he said. "So... we have decided to get out and it took us several years to stage the divestment such that it has minimal impact on the sector."
[email protected]