Government cuts industrial land supply on confirmed list by 30% in H2

THE government has launched five sites on the confirmed list and another five sites on the reserve list with a total site area of 13 hectares (ha) under its Industrial Government Land Sales (IGLS) programme for the second half of 2024.

Huttons Asia senior director of data analytics Lee Sze Teck pointed out that the supply of industrial land under the confirmed list is 30 per cent less compared with the first half of the year.

Lee said: “More land has been shifted to the reserve list for industrialists to trigger if there is a need.”

The government launched 13.75 ha of industrial land across nine sites through the Industrial Government Land Sales programme for the first half of 2024, with five sites on the confirmed list totalling 8.29 ha and four sites amounting to 5.46 ha on the reserve list.

“The manufacturing sector has not been doing well with factory output and exports declining. Occupancy rates of single-user factory space have eased since (the second quarter of) 2020. As a result, demand for industrial land has reduced. The reduction in land supply will shift demand to the resale market and help the industrial property market to stabilise,” Lee said.

The five confirmed sites are in Jalan Papan, Lok Yang Way, Tuas Bay Drive, Kaki Bukit and Tukang Innovation Drive, while the five parcels in the reserve list are in Jalan Papan, Tuas Road, Tukang Innovation Drive, Gambas Way and Tampines North Drive.

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Under the system, a site in the reserve list will be launched for tender if there is an offer of a minimum purchase price that is acceptable to the government, or if more than one unrelated party submits minimum purchase prices that are close to the government’s reserve price for the site within a reasonable period.

In an e-mail to The Business Times on Friday (Jun 28), JTC explained that the decline in land quantum in H2 was due to the inclusion of an exceptionally large multi-user factory site at Kallang Way under the confirmed list in H1.  It added that there has not been a decrease in the total number of sites released across recent IGLS launches.