THE SINGAPORE INDUSTRIAL PROPERTY MARKET

Abstract

The industrial property market in Singapore is mainly dominated by the public sector, which consists of the Jurong Town Corporation (JTC), the Port of Singapore Authority (PSA), the Urban Redevelopment Authority (URA) and the Housing and Development Board (HDB). Together they are responsible tor supplying the bulk of the various types of industrial properties i.e. flatted factories, terraced/detached factories and warehouses in Singapore. In the flatted factory and terraced/detached factory sub-markets, JTC is the primary supplier whereas in the warehouse sub-market, PSA is the main contributor. The private sector, on the other hand, makes up about 13.3% of the total supply of terraced/detached factory space in the market for the period from 1970 to 1984. In the case of the flatted factory and warehouse space, it constitutes about 47.1% and 33.1%, respectively, for the period from 1970 to 1985. A comparison between the private and public sectors shows that generally rentals in the private sector are more expensive than the public sector. In addition, it is also found that there is a wider choice of industrial space in the public sector because of the greater availability of these sites and premises. However, this is not to say that leasing and buying in the private sector is not without its advantages. Probably one of the most important advantages is that in the private sector, the lease does not contain the same extensive and restrictive conditions as the public sector with respect to the control of operating hours, the use of the premises and the layout of the space. Both the public and private sectors must therefore constantly upgrade and evaluate their designs and prices in order to be competitive with each other.