New rules imposed to ‘curb property speculation’ in Singapore | 10 December 2013
Changes have been imposed by Singapore’s biggest commercial property developer which will force an extension on the lease of any of its buildings, businesstimes.com.sg reports.
JTC Corporation, which manages a raft of gardens and industrial parks, has made the amendment in order to ‘dampen property speculation’. It means that lessees will be obliged to hold on to a property for longer before they can sell it on. Similarly, tenants and third party facilities providers will be required to extend their occupation of a site.
Singapore’s ‘industrial land resources’ are becoming increasingly scarce and thus the move by JTC has been adopted as a safeguarding measure. It is hoped the change will ensure that the buildings are used by those that genuinely need them, rather than by those that view property purchases purely as an investment.
By discouraging speculation, says commercialguru.com.sg, the steps might improve price stability in the sector. It should also strike what it called a ‘reasonable balance’ in meeting the needs of lessees and making sure the building is used for the purpose that was originally indicated.
Commenting on the changes, JTC told the media that the lease extensions should “ensure the lessees allocated our limited industrial land in their lease contract based on their proposed business plans remain committed to them for a sustained and reasonable period of time”.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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