IN yet another sign of a general slowdown in the property market, the Singapore Land Authority (SLA) is cutting back on the supply of office space in the first half of this year.

SLA, the state's land agent and custodian of state properties, said it is releasing about 34,200 square metres (sqm) in Gross Floor Area (GFA) for office use in the first half of 2008. This is an easing back from some 43,000 sqm in the first half of 2007.

Quarter-on-quarter, SLA is also tendering one property for dedicated office use so far, compared to six properties in the same quarter a year ago.

'SLA is continuing to monitor the take-up and identifying more suitable sites for office use, in order to help meet expansion needs of financial institutions and facilitate relocations of back-of-house operations,' it said in a statement on Tuesday.

Despite the slower growth in the property sector, SLA's Director Land Operations (Private), Mr Teo Cher Hian said the SLA's office tenders have been well-received so far, with strong bids submitted.

He added that the ready onstream supply has met the immediate need of tenants decanting from prime locations.

'We understand from our tenants that the take-up rates from their sub-tenants have also been good. There is also a healthy take-up by local startups, MNCs, Financial Institutions and public-listed companies of all our prime, city-fringe and suburban locations,' said Mr Teo.

'We will continue to monitor market take-up and identify more sites with office use, if demand is prevalent.'

??? Just launched is a state property at 10 Winstedt Road, which used to be the former Monk's Hill Secondary School. The site of about 15,000 sqm with a GFA of about 7,700 sqm is strictly for office use.

The property comprises a three-story block, a two-storey block and five single storey blocks including a canteen and an auditorium.

The tenancy is for an initial three years and renewable up to 2017.??? The guide rent is $147,300 a month.??? The tender will close on April 16 at 11am.

The other state property launched on March 19 is the former Siglap-Changi Community Centre at 696 Upper Changi Road East. It has a land area of about 9300 sqm with a GFA of about 1,900sqm.

The guide rent is $28,500 per month. Approved uses include foreign system and commercial schools, childcare centre and other educational and health and recreational purposes. The tenancy is for an initial 3 years and is renewable up to 2017.??? The tender will close on April 9.

Another property to be launched later in April is the former Singapore Badminton Hall and Association's premises at 100 and 102 Guillemard Road.

The land area is 10,300 sqm with a GFA of about 11,000sqm.??? Besides office use, other approved uses include food & beverage and restaurant uses. It is located near the Aljunied MRT station. The tenancy is for an initial 3 years,and renewable on terms up to 2017.

Since February last year, SLA started tendering out 15 former schools, vacant community centres, childcare centre and institutional buildings for office use only.

Of these, there were former schools, government buildings, community centres and a former childcare centre.

SLA said its adaptive reuse of government buildings has helped to alleviate the tight office supply, which has offered some 104,000 square metres (sqm) of onstream dedicated office space supply in the first quarter, as a result of 13 successful office tender awards last year.

These properties were located on either the CBD fringes or within housing estates near MRT stations, public transport facilities and amenities. The tendered monthly rent ranged from $4 per sqm (psm) to $35.40 psm, depending on the location, size, condition of the property, accessibility, amenities, and other comparatives.

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