Commercial space supply slashed by 25% for 1H15

There were no sites on the confirmed list.

The Ministry of National Development slashed commercial space supply by 25% in the 1H15 Government Land Sales Programme. According to Barclays, the GLS listed 265,130sqm GFA of commercial space on the Reserve List and no sites on the Confirmed List, down from 352,140sqm in 2H14.

Barclays noted that in its 1H15 GLS programme, the government has included on its Reserve List a second commercial site (of 60,030sqm) in Woodlands Regional Centre at Woodlands Square.
This will help to decentralize employment centres with an aim to move job opportunities closer to residential areas.

Here’s more from Barclays:
The 1H15 Reserve List also has two other sites predominantly for office development carried over from the 2H14 Reserve List – the White site at Marina View/Union Street offering 101,400sqm, and an 88,200sqm commercial site on Beach Road (White sites can be developed for commercial, residential or hotel developments).

These three commercial sites should provide opportunities for future office space development for developers should they anticipate demand.

Sale conditions have been imposed on the 101,400sqm GFA White site at Marina View/Union Street, which has been available since October 2011, to disallow strata subdivision of office space for future development. As the prime office market continues to improve (CBRE expects office rents to rise until 2H16 in view of limited new office
developments), this site could be triggered for sale.

That said, with the 1.88mn sf NLA Marina One scheduled to be completed in late 2016/early 2017, developers might still be guarded, in our view. Overall, we remain positive on the prime office sector in the near term given the lack of new CBD office space scheduled to come on stream in 2015.