Authorities have been increasing land supply to cool the sector in Singapore’s hot property market.
Singapore’s continued rise in property demand and prices has raised concerns that cooling may be around the corner.
Channel News Asia reported that analysts said the focus to cool down the sector may turn to industrial properties this time.
One factor that pushed the residential property sector higher was the ease in obtaining mortgage loans at attractive interest rates.
Analysts said this buying sentiment has now spilled over to the industrial property segment.
The rapid price increases of 7.2 per cent in the first quarter have made some concerned that the government may step in with cooling measures for the segment. However, analysts say there are other options when dealing with this.
“There are property agents, who used to sell residential properties and they do it in a very aggressive manner, are moving into the industrial property market. And they are using that same tactics of very aggressive marketing,” said research head at the SLP International Nicholas Mak. “And they are not experienced in industrial property sector.”
Authorities have been increasing land supply to cool the sector and the new Industrial Government Land Sale sites must develop a single strata unit gross floor area of at least 150 square metres.
“The reason the government has not taken a more proactive measure is mainly because the number of transactions that we have seen in the industrial sector is probably 15 per cent compared to the whole transaction volume” said Donald Han, special advisor, HSR.
Source: PropertyReport – 2012 May 22
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