Singapore industrial land supply cut again for first half of 2020

Singapore

THE government has once again trimmed industrial land supply for the first half of 2020 under its Industrial Government Land Sales (IGLS) programme.

Industrial land supply fell to 7.11 hectares (ha) in total site area. The number of sites in the confirmed and reserve lists were also reduced.

The Ministry of Trade and Industry (MTI) announced on Friday that there are three sites in the confirmed list and five sites in the reserve list.

This is down from the four sites in the confirmed list and six sites in the reserve list amounting to a total supply of 9.98 ha for the second half of 2019.

In the first half of 2019, there were five sites in the confirmed list and seven sites in the reserve list, amounting to a total supply of 11.86 ha.

In the latest launch, the three confirmed list sites are zoned "B2" for heavier industrial use with a tenure of 20 years. They are located at Jalan Papan in Jurong, Tampines North Drive 3 and Gambas Avenue/Sembawang Avenue.

The Tampines site was previously in the confirmed list for the first half of 2019. Its previous tender closed in April with one bid submitted, which was not accepted as it was below the reserve price.

The five reserve list sites are also zoned "B2". The Kaki Bukit Road 5 plot has a tenure of 30 years and was previously in the reserve list for the second half of 2019.

The other four sites each have a tenure of 20 years. They are at Tuas South Link 3, 160 Gul Circle, Gul Avenue and Jalan Papan. The Jalan Papan site was previously in the confirmed list for H1 2019.

Confirmed list sites are launched according to schedule regardless of demand, while reserve list sites are put up for tender when a developer makes an offer of a minimum purchase price that is acceptable to the government. JTC Corporation will be the sales agent for all the sites.

Brenda Ong, executive director and head of logistics and industrial at Cushman & Wakefield Singapore, said IGLS for the first half of 2020 has provided more varied options in terms of locations and sizes. This is good for catering to different user needs. "Given the economic uncertainties, the government has continued to take a prudent approach by skewing the supply of land towards the reserve list," Ms Ong said. She added that the supply of smaller and shorter tenure sites zoned "B2" also reflect the government's current strategy to provide affordable industrial spaces for end-user industrialists, rather than private developers who would favour sites with longer tenure.