12 industrial sites available in second half of year

The Industrial Government Land Sales programme has listed 12 sites for the second half of the year - two more than in this half.

There are seven on the confirmed list and five on the reserve list, which can be triggered for public tender with an acceptable minimum bid.

"The Government will continue to release sufficient land... to ensure an adequate supply of industrial space in Singapore," the Trade and Industry Ministry said in a statement yesterday.

The seven confirmed plots have a total site area of 3.99ha, and all have a tenure of 20 years. Four are in Tuas South Link, two in Tampines Industrial Drive and one in Woodlands Industrial Park. This is the largest of the seven sites at 0.88ha.

Ms Brenda Ong, executive director for industrial and logistics at CBRE, said: "This will ensure that occupancy costs are controlled with ample supply possibly in 2018/2019."

Three of the five reserved sites are in Tuas South Link, one is in Tuas Bay Close and the other in Woodlands Height. These sites span a total area of 7.71ha and have tenures of either 20 or 30 years.

There were 10 sites offered in the first half - six on the confirmed list and four on the reserve list - with a total area of 12.24ha.

Consultancy Cushman and Wakefield noted that the average maximum permissible gross floor area (GFA) of the sites has also shrunk significantly from the first to second half.

The average GFA for confirmed list sites in the first half was 112,913 sq ft, 10.7 per cent more than the 100,781 sq ft being offered in the second half. The corresponding figure for sites under the reserve list has fallen by 26.2 per cent, from 432,009 sq ft to 318,827 sq ft.

"Given the ongoing weakness in manufacturing, the reduction in the average GFA for the upcoming sites is timely," said Cushman and Wakefield research director Christine Li.

Mr Tan Boon Leong, executive director and head of industrial at Knight Frank Singapore, expects demand for industrial space to remain muted in view of the uncertainties after Britain's decision to leave the European Union. "Even before Brexit, industrialists were already mindful about cost and the take-up of space. They are unlikely to be too gung-ho about their expansion plans now," he said.

Wong Siew Ying

A version of this article appeared in the print edition of The Straits Times on June 29, 2016, with the headline '12 industrial sites available in second half of year'. Print Edition | Subscribe