JTC launches sale of first industrial site this year

The first of six sites in the Industrial Government Land Sales programme for the year was launched by JTC yesterday.

The 0.5ha plot in Tuas South Link 3 is zoned for Business 2 development, which is typically for heavy industrial use. The site has a 20-year tenure with a maximum permissible gross plot ratio of 1.4.

Dr Lee Nai Jia, head of South-east Asia research at property consultancy Edmund Tie and Company, said demand for industrial land, as well as the bid prices, has been relatively stable. He estimated that there will be one to three bidders for the site, with offers coming in at $30 to $35 per sq ft per plot ratio.

He added that owing to the short tenure, most of the bidders are likely to be industrialists who will use the sites for themselves rather than subletting them.

There are 11 sites in the Industrial Government Land Sales programme for the first half of this year - six confirmed plots and five on the reserve list. The six confirmed parcels have a total site area of 3.27ha and each has a tenure of 20 years. Four are in Tuas South Link, one in Tampines North Drive and one in Jalan Lam Huat.

The number of sites is just below the 12 offered in the second half of 2015 - seven were confirmed plots and five were on the reserve list.

Dr Lee said the industrial leasing market is expected to remain subdued, given the uncertain economy.

"That they reduced the number of sites but one, shows that the Government is slightly optimistic and mindful. They are still very worried about the external environment but there are signs, for instance, that the electronics segment is doing well," Dr Lee added.

Lee Xin En

A version of this article appeared in the print edition of The Straits Times on February 01, 2017, with the headline 'JTC launches sale of first industrial site this year'. Print Edition | Subscribe