URA launches transitional office site at Mountbatten
Road
SINGAPORE : The Urban Redevelopment Authority (URA) has
released another transitional office site at Mountbatten Road for
sale, as part of efforts to ease the shortage for office
space.
But with the ongoing turmoil in global financial markets, property
analysts are now saying that demand for office space is likely to
fall.
Located at the fringe of the city, the 1.17-hectare plot of land
can be developed into an office building with a maximum gross floor
area of 11,739 square metres (126,358 square feet).
The 15-year low-rise leasehold site, situated near the future
Mountbatten MRT Station, can be developed into three storeys of
office space.
It is the second transitional office parcel launched this
quarter.
But with the ongoing turmoil in global financial markets, property
analysts are now saying that demand for office space is likely to
fall.
"We believe that over the last two months, the office rental
probably peaked, and moving forward there will be quite a bit of
office supply coming on stream ... between the years 2010 and
2013," said Ku Swee Yong, director of Savills.
Analysts are also expecting office rentals to fall.
"There are several more sites which ar under construction now,
(and) ready within the next half year to be supplied to the market.
In addition, there are land parcels released by the Singapore Land
Authority (SLA), for example Phoenix Park, that could potentially
also bring on to the market quite a lot of office space for various
types of users, smaller sized one perhaps," said Ku.
So, analysts said it might soon be time for the government to
review the need for more of such transitional office sites.
Transitional office sites cater to the office supply shortage
situation prevalent a year ago.
The Mountbatten site is the second transitional office parcel
launched this quarter, and is one of three commercial sites
identified for sale under the Government Land Sales Programme's
confirmed list in the second half of this year.
The tender for the Mountbatten site will close at noon on November
18, 2008. - CNA /ls