After a fairly eventful 2013, market watchers are expecting subdued activity in the industrial property market this year, with no likely large-scale changes to take place.
On the whole, property measures rolled out last year tend to be more aligned towards end users with the intention to support industrialists over speculators. Among the notable ones were the Seller Stamp Duty introduced in January, the Total Debt Servicing Ratio framework put in place in late June, as well as a longer holding period for industrial properties on JTC-leased sites and an extension of the minimum occupation period for anchor tenants from 15 November 2013. At the same time, the authorities also continued to ramp up supply of industrial land.
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Property analysts said the measures have prevented a runaway in industrial property rents and prices and have, to some extent, helped to rein in the real estate cost of industrialists.
Data from the Urban Redevelopment Authority showed industrial real estate prices gaining 2.8% over the previous quarter in the third quarter of 2013, a figure which is well lower than the 8.9% quarterly growth over the previous year.
On the other hand, transaction volumes also saw a huge dip. In the first three quarters of 2013, the number of caveats lodged for industrial property was 1,953, which is 37% lower than the same period last year.
However, experts feel that more could be done. For instance, even as smaller sites and plots with shorter leases are being rolled out to cater to end users, land bids have been increasing.
A case in point would be the 30-year leasehold site in Woodlands Industrial Park E9 launched last year that drew 10 bidders and a top bid of $72.7 million or some $161 per square foot per plot ratio. This made it the record price for a 30-year industrial plot.
And even as more manufacturers are moving abroad, with a favourite being Johor, Malaysia and its upcoming Iskandar region as a means of coping with higher costs, this is not a one-size-fits-all solution as not all are able to or would like to relocate their business operations to another country due to logistic and labour issues. There are also concerns over political risks and the unfamiliarity with the real estate or labour laws of another country.
Therefore, experts advise that the government needs to ensure that manufacturing-related companies still have a place in Singapore's factories, and are not disqualified out-of-turn as commercial entities in today's evolving economy.
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Overall, industrial property prices and rents could soften in 2014 - on the back of new market measures, loan policy tweaks and higher supply amid a cautiously optimistic economic outlook. Some 20.9 million square feet of space is due to come onstream, going by URA data - a historical high.
For more District Guides, you can head over to iProperty.com Singapore.
On the whole, property measures rolled out last year tend to be more aligned towards end users with the intention to support industrialists over speculators. Among the notable ones were the Seller Stamp Duty introduced in January, the Total Debt Servicing Ratio framework put in place in late June, as well as a longer holding period for industrial properties on JTC-leased sites and an extension of the minimum occupation period for anchor tenants from 15 November 2013. At the same time, the authorities also continued to ramp up supply of industrial land.
Property analysts said the measures have prevented a runaway in industrial property rents and prices and have, to some extent, helped to rein in the real estate cost of industrialists.
Data from the Urban Redevelopment Authority showed industrial real estate prices gaining 2.8% over the previous quarter in the third quarter of 2013, a figure which is well lower than the 8.9% quarterly growth over the previous year.
On the other hand, transaction volumes also saw a huge dip. In the first three quarters of 2013, the number of caveats lodged for industrial property was 1,953, which is 37% lower than the same period last year.
However, experts feel that more could be done. For instance, even as smaller sites and plots with shorter leases are being rolled out to cater to end users, land bids have been increasing.
A case in point would be the 30-year leasehold site in Woodlands Industrial Park E9 launched last year that drew 10 bidders and a top bid of $72.7 million or some $161 per square foot per plot ratio. This made it the record price for a 30-year industrial plot.
And even as more manufacturers are moving abroad, with a favourite being Johor, Malaysia and its upcoming Iskandar region as a means of coping with higher costs, this is not a one-size-fits-all solution as not all are able to or would like to relocate their business operations to another country due to logistic and labour issues. There are also concerns over political risks and the unfamiliarity with the real estate or labour laws of another country.
Therefore, experts advise that the government needs to ensure that manufacturing-related companies still have a place in Singapore's factories, and are not disqualified out-of-turn as commercial entities in today's evolving economy.
Overall, industrial property prices and rents could soften in 2014 - on the back of new market measures, loan policy tweaks and higher supply amid a cautiously optimistic economic outlook. Some 20.9 million square feet of space is due to come onstream, going by URA data - a historical high.
For more District Guides, you can head over to iProperty.com Singapore.