Government tightens industrial land supply under Land Sales Programme

The Government is tightening the supply of industrial land. A total of 14 sites have been placed under the Industrial Government Land Sales (IGLS) Programme for first half of 2015 – one fewer than for the preceding six months.

Of the 14, nine sites have been placed on the Confirmed List. Of these, three are located at Tampines Industrial Drive, four at Tuas South, and one each at Woodlands Avenue 10 and Ubi Avenue 1.

According to SLP International Property Consultants, these nine sites will offer a total gross floor area of 84,100 square metres – nearly 58 per cent lower than what was offered under the Confirmed List for the second half of 2014.

The remaining five sites have been put on the Reserve List. They are located at Tuas South, Tampines Industrial Drive and Tuas Bay Close.

Under the Reserve List, the Government will release a site for sale if an interested party submits an application for the site to be put up for tender with an offer of a minimum purchase price that is acceptable to the Government.

Many of these sites come with a land tenure of 20 years, instead of 30 years under previous land sales programmes. SLP said this could be aimed at lowering the cost of industrial space.

There has also been a reduction in the number of large multiple-user development sites under the Confirmed List.

According to SLP, this is seen as bringing some relief to developers of industrial projects with significant number of unsold strata-units.

In addition, the Ministry of Trade and Industry said, in response to feedback from developers and industrialists, that it will remove the goods lift and loading bay requirement for all full ramp-up developments on IGLS parcels in B1 and B2 zones launched from Jan 1, 2015.

Source : Channel NewsAsia – 30 Dec 2014

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