S'pore Cheaper Than HK, Tokyo

Source : AsiaOne News, Wed, Aug 29, 2007

Despite rising property costs and wages, Singapore remains cheaper than regional global cities such as Hong Kong and Tokyo, Trade and Industry Minister Lim Hng Kiang has said.

He quoted studies which showed that Singapore remains cheaper than other global cities in the region.

A survey on global office market rentals by consultants CB Richard Ellis showed that Singapore was 30 per cent cheaper than Hong Kong, and 50 to 60 per cent cheaper than Tokyo.

Mr Lim cautioned however: "'We have to maintain vigilance over our costs, as excessive cost increases will dampen our growth prospects."

He was speaking in Parliament yesterday and addressing MPs' concerns about the impact of rising business costs on the Republic's economic competitiveness.

Citing as examples London and New York, which are thriving hubs despite their high costs, Mr Lim said "competitiveness is more than offering low costs alone", but also about value creation.

This empowers Singapore with attributes that economies in the region cannot easily replicate, such as its livability.

Mr Lim also pointed out that in the past three years, the consumer price index has increased at an annual rate of 1 per cent, while overall unit labour cost actually declined at an annual average rate of 2.2 per cent.

"However, in recent quarters, we have seen increases in property prices and rentals, as well as wages," he added.

He cited recent moves to release land for temporary office space as well as provide more public flats for rental.

The Ministry of National Development (MND) also released additional information on property prices and rents 'to allow the public and businesses to make more informed decisions on property purchases and rentals'.

The Government is also looking at ways to help more Singaporeans capitalize on the strong employment market and rejoin the workforce.

Addressing media reports of "sky-high" office rentals, Mr Lim said although the median prime office rent in the second quarter was $9.50 per sq ft per month, the median rent in other locations, accounting for about 80 per cent of office space here, was less than half of that