http://www.businesstimes.com.sg/sub/...74320,00.html?

Published January 19, 2012

Govt will continue to release GLS sites: Khaw


(SINGAPORE) The government will continue to release sites through the Government Land Sales (GLS) programme, Minister for National Development Khaw Boon Wan said in a written parliamentary reply to MP Gan Thiam Poh.

Mr Khaw said that this would help to ensure that enough commercial and industrial space is available to meet demand over the medium term. This will, in turn, ensure that prices are not out of line with economic fundamentals.

According to Channel NewsAsia, Mr Gan had asked whether the government would consider introducing cooling measures to stabilise prices, as he was concerned about the possibility of excessive price hikes in industrial and commercial properties - which would drive up business costs and hurt competitiveness.

Mr Khaw said that prices of commercial and industrial spaces have risen following the economic recovery from the global financial crisis in 2009, but noted that the increases for office and shop space have been moderate.

CNA reported that there would be about 200,000 square metres of new office space and 90,000 square metres of new shop space per annum over the next five years. Mr Khaw said that this was significantly higher than the historical take-up rate.

In order to provide more affordable commercial space for companies that do not need to be housed within the CBD, Mr Khaw said that the government would also continue to foster new growth areas outside the CBD, such as Jurong Gateway and Paya Lebar Central.

In addition, 24 hectares of industrial land will be made available for the first half of this year, while more affordable sites with smaller sizes and shorter tenure will be released.