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HDB To Stem Speculation On Commercial And Industrial Properties

Posted by Property Launch Invest on Tuesday, 12 November 2013 in Property News

Starting from this Wednesday onwards, commercial and industrial properties will not be spared from “cooling measures”.

In a bid to curb speculation, the Housing Board (HDB) announced today that all new tenants will be required to tender for premises direct from HDB. Previously, outgoing tenants are allowed to transfer the property to an incoming tenant for a fee or cash premium that is negotiated between the two. With the new rule in place, extra costs that are being passed on to customers can be prevented.

Typically, business owners will assign their properties to others under two scenarios – one, simply that the business is not doing well and the owner needs to recoup losses by means of transfer or that the property has become profitable that profits can be reaped from transferring.

According to HDB, the average assignment fee and rental has seen an upward trend of late. High assignment fees and tendered rents will contribute to higher operating costs, which may be passed on to residents and consumers. In this case, assignment may encourage unhealthy speculation. To help existing tenants adjust to the new rule, HDB said it will allow these businesses to transfer their property once within a three year window which ends on Oct 15 in 2016.

Following the announcement, HDB also announced the construction of four new neighbourhood centres in Punggol, Hougang and Sembawang to ensure there are enough amenities to handle the ramp up in public housing in these areas.

Source: Iproperty 21th October 2013

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PROPERTY LAUNCHES & INVESTMENTS

Property Launches & Investments

HDB To Stem Speculation On Commercial And Industrial Properties

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