Government puts out largest supply of industrial land plots under GLS programme since 2020  

A TOTAL of 6.36 hectares of industrial land is up for tender in the Industrial Government Land Sales (GLS) programme for the second half of 2022, in what is the largest industrial land supply release from the state since 2020. 

There are 4 sites on the confirmed list and 3 on the reserve list. Reserve list plots will only be put up for sale if an interested party offers a minimum purchase price that is acceptable to the government, or if there is sufficient market interest.

Altogether, these 7 parcels could potentially generate around 1.35 million square feet (sq ft) of potential gross floor area (GFA) for H2 2022, up 37 per cent from the 990,000 sq ft of potential GFA from the 7 parcels with total land area of 4.48 hectares offered in the H1 2022 programme, said Tan Boon Leong, executive director, logistics and industrial leasing, JLL Singapore.

Tan believes that the fresh supply comes after considerations by the government on Singapore’s industrial property market performance in the first quarter of 2022, which posted its best quarterly performance in 8 years.

JTC statistics showed the all-industrial rental index rose 1.0 per cent quarter on quarter in Q1 2022, the fastest since the 4.4 per cent recorded in Q3 2013. The all-industrial property price index also surged 2.1 per cent quarter on quarter in Q1 2022, the sharpest since Q1 2014, which posted a 3.8 per cent growth.

Tan noted that ongoing geopolitical tensions and macroeconomic uncertainties were also taken into consideration. “This is reflected in the placement of a larger quantum of land (3.52 ha which could yield a potential GFA of 0.86 million sq ft) on the 2H 2022 Reserve List for industrialists/developers to trigger for tender in response to market demand,” he said.