The Jurong Town Hall Coporation (JTC) has changed its industrial property rules and introduce new property measures such that property developers who are currently holding lease with JTC will need to hold their units longer before they could sell them. This is the latest round of measures by JTC to ensure the longetivity of the industrial property sector in the city state by promoting genuine industrialist who are looking for an industrial space for production rather than property investment flipping in the short term.
Industrial Property Measures
JTC spokesperson commented that the new industrial property measures will strike a good balance on industrialists who might need to sell the developed commercial property into the secondary market and buyers who are holding it the long term for business needs. Property analysts note that the new measures will dampen the industrial property secondary market and many industrial property brokers might be affected.
Even though this might have a undesirable consequence on the industrial real estate property market, the primary motive of the new JTC property measures is to set up viable industrial workspace for genuine industrialists. It is a stepboard for industrialists to set up these facilities with greater ease. Before the new ruling, new JTC lessees are not allowed to sell their facilities for 3 years which include the construction of the industrial facility as well as the installation of plant and machinery. After the new ruling, the period is now extended to 5 years. Also, another change is that lease which are remaining less than 5 years are not allowed to be sold in the secondary market. The previous ruling was 3 years.
Will the measures affect the industrial market?
The above property measures was set up to cap against industrial property speculation and this might have an effect on industrial property prices. However, Riverbank condo at Fernvale Sengkang will not be affected as it is a private property.