Industrial property prices tipped to slide

Industrial firms planning to expand will benefit most from the property cooling measures imposed last week, according to market experts.

They predict that prices of industrial property will slide in the wake of the new seller's stamp duty, which is expected to curb speculation.

That in turn will help lower business expenses as occupancy costs decrease, alleviating some of the impact from the slowing economy.

Industrial property sold within a year of its purchase will be levied 15 per cent; 10 per cent if sold in the second year and 5 per cent in the third year.

Bloomberg reported yesterday that industrial building sales are likely to drop by 10 per cent this year as speculators are driven out of the market.

Deputy Prime Minister Tharman Shanmugaratnam said last week that evidence of flipping compelled the Government to intervene in the industrial segment.

Analysts welcomed the measures as Singapore needs to retain its cost advantages to remain attractive as a business hub, the Bloomberg report said.

Source: The Straits Times –18January 2013