SINGAPORE (THE BUSINESS TIMES) – The Government has increased its supply of industrial space via its land sales programme for the second half of 2022.
There are four sites on the confirmed list and three on the reserve list, which brings the total site area to 6.36ha, the Ministry of Trade and Industry announced on Thursday (June 30).
Parties who are interested in the sites included in the reserve list can apply to JTC Corporation.
The reserve sites will be put up for tender only if an interested party offers a minimum purchase price that is acceptable to the Government, or if there is sufficient market interest.
Altogether, the seven parcels can potentially generate around 1.35 million sq ft of gross floor area (GFA).
This is a 37 per cent increase from the 990,000 sq ft of potential GFA which could be generated from the seven parcels with total land area of 4.48ha offered in the first half of the year, said Mr Tan Boon Leong, executive director for logistics and industrial leasing at JLL Singapore.
It is also the largest industrial land supply from the biannual industrial Government Land Sales programme since the first half of 2020.
Mr Tan believes that the fresh supply comes after considerations by the Government on Singapore’s industrial property market performance in the first quarter of 2022, which posted its best quarterly performance in 8 years.
JTC statistics showed the all-industrial rental index rose 1 per cent quarter on quarter in Q1 2022, the fastest since the 4.4 per cent recorded in Q3 2013.
The all-industrial property price index also surged 2.1 per cent quarter on quarter in Q1 2022, the sharpest since Q1 2014, which posted a 3.8 per cent growth.