Question:
Asst Prof Tan Kheng Boon Eugene: To ask the Minister for Trade and Industry (a) whether the sharp increases in the price of industrial space in Singapore over the first three quarters of 2012 indicate that investors are turning to factory and warehouse space following the cooling measures in the residential property market; and (b) when cooling measures for industrial property sector will be deemed necessary.
Written Reply by Mr Lim Hng Kiang, Minister for Trade and Industry:
URA’s price index for industrial property rose by 26.7% in the first three quarters of 2012. This exceeded the 1.0% increase in private residential prices over the same period. In general, prices for private residential properties have been moderating since the imposition of cooling measures in September 2009. This may suggest a shifting of some investment interest from the private residential market to the industrial property market.
We will continue our efforts to moderate both prices and rentals for the industrial property market. We will release sufficient land through the Industrial Government Land Sales (IGLS) programme to meet the needs of industrialists. We have also started to release smaller IGLS land parcels with shorter tenure, targeted at SMEs that require customised land-based facilities at more affordable prices. In addition, we will continue with our enforcement efforts to ensure that industrial space is not misused by non-industrial users, which may also have contributed to the increase in industrial prices and rentals.