URA had approve more usage for industrial property
With effect from 24 November 2014, due to outlying industrial estates which are located far from existing commercial nodes, in order to facilitate the needs of people working in such area, saving times for individuals and businesses, Urban Redevelopment Authority (URA) had open up change of use to banking hall/ATM, fitness centre/gym, Clinic, Minimarts, Call Center to Business 1 (B1) industrial property.
Previously not allowed in the clean and light B1 industrial building, Appendix 2 shows the outlying industrial estates where such selected commercial uses can be allowed but not without restriction.
These newly added trade user will be restricted to level 1 of the building, If supported, the uses will be approved on Temporary Permit (TP) for up to three years and levied base on Commercial “A” rates, capped at a size of 200 square meters or 10% of the total proposed Gross Floor Area (GFA) per developmen
So what does it mean to property owner? Will the rental be increase?
Well, given only 200 square meters area, for big development will not have too big of an impact, say a development with at lease 20 ground floor units, how many will benefit from it? It is simple mathematics.
With current rental situation, if the unit is able to rent out at a decent pricing is already a blessing, I believe with the new regulation, having unit to stay vacant for a shorter duration will be more appropriate than increasing the rent.
How about tenant?
As the location is far from commercial nodes, more focus target audience, lesser competition, convenience to more people and most importantly, rental is generally cheaper for industrial property than a commercial property. There can only be advantage for the newly selected trade to operate their businesses in these areas.
One piece of advise, act fast.
Although the space allowed for the new trade is not significant, not matter what, is still a step forward from our authority.
Analysis by Desmond Wong
www.singaporepropertydistrict.com
26 November 2014
Official Circulars
http://www.ura.gov.sg/uol/circulars/2014/Nov/dc14-25.aspx
http://www.ura.gov.sg/uol/circulars/2014/Nov/dc14-24.aspx