Singapore launches 3.86 hectares of industrial land supply for H1 2021

Singapore

THE government has launched 3.86 hectares (ha) of industrial land across six sites under the industrial government land sales (IGLS) programme for the first half of 2021, the Ministry of Trade and Industry (MTI) announced on Tuesday.

Three sites are on the confirmed list and another three are on the reserve list, similar to what was offered in H2 2020. However, the total site area for H1 2021 is less than the 4.4 ha in H2 2020.

Tay Huey Ying, head of research and consultancy, Singapore at JLL, noted the government has continued to take a cautious stance by scaling back land supply for the fifth time.

"In calibrating its latest IGLS programme, the government had likely considered the lingering uncertainties around the battle against Covid-19 and the downside risk on economic growth and demand for industrial space," she said.

For H1 2021, all six sites are zoned B2 for heavier industrial use.

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The confirmed sites are in Tampines North Drive 5, Gul Avenue and Jalan Papan, with total site area of 1.6 ha. All three sites have a tenure of 20 years, with estimated availability from March to June next year.

The three reserve list sites for H1 2021 are in Woodlands Industrial Park, Tampines North Drive 5 and Jalan Papan. The Woodlands and Tampines sites have a tenure of 30 years, while the Jalan Papan site has a 20-year tenure. The sites are estimated to be available between February and May next year.

Ms Tay noted the government has placed a slightly larger quantum of potential gross floor area on the reserve list in H1 2021, compared to H2 2020, which could be triggered for tender in response to market demand, to cater to varying business needs.

Under the reserve list, the government will put up a site for tender if an interested party submits an application with an offer of a minimum purchase price that is acceptable to the government. The site may also be put up for tender if there is sufficient market interest in the form of more than one unrelated party submitting minimum purchase prices that are close to the government's reserve price for the site within a reasonable period.

"The government will continue to release sufficient land through the IGLS programme to ensure an adequate supply of industrial space in Singapore," MTI said.