INDUSTRIAL MARKET ANALYSIS IN SINGAPORE

Abstract

Singapore's goal towards globalization had cast a profound impact on local industrial market trend. Urban Redevelopment Authority has revised the old zoning in Master Plan 2003 and Jurong Town Corporation has demolished those obsolete factories so as to provide more lands for building purpose-built factories. Their main objective is to provide flexibility and encourage private sectors' participation. End-user industrialists have turned towards high-valued added activities such as Biomedical and Pharmaceuticals while most of the low-valued added activities have been outsourced. They have also change their preference towards purpose-built industrial premises and 30+30-year leasehold. Hence, leads to the price of the industrial premises in west and north regions to drop tremendously but those in east and central have shown sign of recovery. In chi-square test, it justifies that change in sizes of the production area and type of industrial premises would be influenced by the change in industrial trade whereas tenure does not. In simple linear regression model, it supports that land area, tenure, type, location and period of transactions do affect the price of the industrial premises. Both models clearly interpreted that the demand for 30+30 year leasehold land is high as it shows the least decrease in price as compared to freehold, 99-year leasehold and 60-year leasehold. Price of standard detached factory and those located in west region have also decreased sharply while price of purpose-built factory and those located in east and central region have shown sign of improvement as they do meet the new industrial needs.