Office rents in Singapore are expected to outstrip Hong Kong's by end 2008 and Singapore hotel room rates are projected to triple by 2015!

It's also an indicator of Singapore's vibrant and ever growing economy. According to the Business Times, the demand for space is driven by IPO's, Merger &Aquisition activities and private wealth management-and they are all expected to continue growing.

Singapore is also awaiting an entourage of foreign visitors awaiting the Formula One Circuit, casino-resorts, Universal Studio's theme park and the world's largest ferris wheel.

It's a case of demand outstripping supply. The supply for land or space is not enough to meet demand.

Its a much better fix to be in as compared to having excess land and space that we're sitting around swatting flies and wondering what we are to do with it.

Here's what i mean:

Chairman of City Developments Kwek Leng Beng says the city will be short of hotel rooms as Singapore attracts more tourist to its shores.

The government expects the number of visitors to double to 17 mln by 2015, with tourism spending tripling to S$30 bln.

With regards to office space, the government is currently considering moving some public organisations out of prime office space in the CBD to make way for the private sector.

Yes it may not be fair but at the end of the day money talks.

And so in turn, we'll have hotel rates and office rents rocketing sky high

Our island is small, we may have the capital to build magnificent structures that may draw in the crowds, but we can't run away from the fact that we are on a small island and land is limited.

And exorbitant rates may affect Singapore's competitiveness in drawing foreign investors

However, let's just say we'll cross the bridge when we get to it.

To leave your comments, please log on to investorcentral.blogspot.com


Yeo Sue En

Labels: excess, F1, Grand Prix, hotel rates, office rents, tourism