Higher supply of industrial sites available under 2H2023 GLS programme
/ EdgeProp Singapore |
The 2H2023 Industrial Government Land Sales programme has five sites in the Confirmed List with a site area totalling 6.43 ha (Picture: Samuel Isaac Chua/The Edge SIngapore)
SINGAPORE (EDGEPROP) - The Ministry of Trade and Industry (MTI) has, on June 23, announced the Industrial Government Land Sales (IGLS) programme for the second half of the year. The programme comprises five sites in the Confirmed List with a site area totalling 6.43 ha (692,119 sq ft) and three sites in the Reserve List totalling 3.38 ha (363,820 sq ft). Together, the sites have a total area of 9.81 ha (1.06 million sq ft).
The site area under the Confirmed List represents a 63.2% bump up from the 3.94 ha launched across four sites in the first half of the year, notes Lee Sze Teck, senior director of research at Huttons Asia. “This is the highest supply of industrial land since 2H2014 when 9.5 ha of industrial land was launched,” he adds.
Source: MTI
The five sites under the Confirmed List are located along Tampines North Drive 5, Tampines North Drive 4, Tuas Bay Drive, Gambas Way, and Tuas Link Close. Meanwhile, the sites under the Reserve List include two along Jalan Papan and one along Tuas Road. Two of the sites - Plot 3 Jalan Papan and the site on Tuas Road - are currently in the 1H2023 Reserve List.
Sites on the Reserve List will be put up for tender if in the event an interested party submits an application with an offer of a minimum purchase price that is acceptable to the government; or if more than one party submits minimum purchase prices close to the government’s reserve price within a reasonable period.
Source: MTI
The boost in industrial land supply comes as prices and rents have continued to appreciate, despite a weaker outlook for Singapore’s manufacturing and export sectors. In 1Q2023, JTC data showed industrial property prices increased 1.5% q-o-q, while industrial rents rose by 2.8% q-o-q. “Prices and rents of industrial space have defied the weak outlook and continued to appreciate in the past few months,” remarks Huttons’ Lee.
To that end, he believes the government may be increasing industrial land supply in a bid to temper price and rental growth, thus helping manufacturers manage occupancy costs. “This may lead to a slower industrial property market two to three years down the road,” he opines.
Check out the latest listings near Tampines North Drive 5, Tampines North Drive 4, Tuas Bay Drive, Tuas Road
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