15th August, Wednesday
Commercial
Office rental rates slide Source: Today Singapore office rents are extending their slide as global economic uncertainty forces landlords to drop prices. A property consultancy said the average monthly gross rents for central business district (CBD) Grade A space fell by 1.1 per cent quarter-on-quarter to S$8.45 per sq ft in the three months ending June 2012. This follows a 4.3 per cent on-quarter drop in 1Q. The price decline appears to have boosted demand, with CBD occupancy rates rising to 92.0 per cent in 2Q from 90.9 per cent in 1Q. The consultancy expects CBD office rental rates to decline further in the second half of 2012 due to the uncertainty in the euro zone and a possible supply overhang. The office leasing market has been relatively steady, with firms in the finance and IT industries among the most active with enquiries.
Links to the story: http://www.todayonline.com/Print/Singapore/EDC120814-0000152/Office-rental-rates-slide http://www.channelnewsasia.com/stories/singaporebusinessnews/print/1220122/1/.html
Industrial
JTC putting out factory space designed for SMEs Source: Business Times AS part of a slew of measures to ensure that small and medium-sized enterprises (SMEs) have a steady stream of industrial space, JTC will be launching its Small Footprint Standard Factories at Tanjong Kling come September. The single-user, three-storey terrace standard factories to be launched next month are an improved version of JTC's current standard factories, and are expected to add about 14,800 sq m to JTC Corp's portfolio of standard factory space. According to JTC, SME tenants using the Small Footprint Standard Factories will benefit from greater space flexibility as there will be additional structural provisions to allow the easy installation of different material handling systems within the factory. JTC will also launch the Surface Engineering Hub and MedTech1 @ MedTech Hub, which is expected to provide an additional 64,200 sq m of industrial space in 2013. Beyond this pipeline of specialised developments, JTC has made provisions for SMEs seeking industrial land to build their customised facilities. Specifically, SMEs are able to take part in JTC's land launches via the Open Land Application Scheme, or the newly introduced Price-Quality Tenders, which releases land with shorter tenures to lower the investment commitments required. This is in addition to the increased supply of industrial land made available via the Industrial Government Land Sales.
Links to the story: http://www.businesstimes.com.sg/print/183358 http://www.straitstimes.com/st/print/417129
URA to launch Yishun industrial site for tender Source: Business Times An industrial site in Yishun will be launched for tender by the Urban Redevelopment Authority (URA) in about two weeks' time. URA said Tuesday that it had accepted an application from a developer to put the site up for public tender at a minimum bid price of $14.2 million. The land parcel at Yishun Avenue 9 has an area of about 1.2 hectares and a maximum permissible gross plot ratio of 2.5. Zoned for Business 1 development, the site will have a lease period of 30 years. The tender period for the land parcel will be about four weeks. Property consultants expect a subdued response to the site because of its short lease period and relatively smaller size compared to adjacent plots. An analyst expects the site to attract fewer than five bids, with each averaging $80-100 per sq ft per plot ratio (psf ppr). The break-even cost is probably between $220 and $250 psf and the estimated selling price could be around $280-$300 psf, he said. Another analyst also expects the site to draw fewer than five bids and predicts a more modest top bid of $55-60 psf ppr, but is optimistic about the site's appeal. The plot of land is attractive because it has already been proven (to be) good by previous developments, and there exist all the supporting networks, he said.
Links to the story: http://www.businesstimes.com.sg/print/183361 http://www.channelnewsasia.com/stories/singaporelocalnews/print/1220064/1/.html
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