Government raises supply of industrial land with seven hectares offered for H1 2023

THE industrial government land sales programme for the first half of 2023 has been launched with a total site area of 7.16 hectares (ha), up from the previous 6.36 ha released in the last launch.

This round includes four sites on the confirmed list and three sites on the reserve list, said the Ministry of Trade and Industry on Wednesday (Dec 28).

Sites on the reserve list will be put up for launch only if there is sufficient market interest from parties that submit minimum purchase prices close to the government’s reserve price, or when an interested party offers a minimum purchase price that is acceptable to the government.

Prices and rents of Singapore’s industrial spaces have been heated.

Data from JTC’s quarterly market report revealed that industrial space prices in Q3 rose 2 per cent and 7.2 per cent on a quarterly and yearly basis, while prices for the multiple-user and single-user factory segments in Q3 climbed 1.9 per cent and 2.1 per cent respectively, against Q2 2022.

Year on year, prices for the multiple-user and single-user factory segments advanced 7.6 per cent and 6.8 per cent, respectively.

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However, analysts believe such price and rental increases are likely to ease in the coming months amid inflationary pressures and geopolitical tensions.