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A 554,235 sq ft industrial site in Tuas South Street 7 attracted eight bids, with the highest at SS$5.2 million or S$96 per sq ft per plot ratio, according to media reports.
Zoned for B2 industries, the land parcel has a plot ratio of 1, while the lease is valid for 20 years and 10 months.
“The relatively healthy participation in (the) tender is partly due to the limited supply of such small sites in the current industrial Government Land Sales programme, said SLP International research head Nicholas Mak. Another likely factor is the affordability, said experts.
IG Tuas submitted the top bid, followed by New Hope Singapore’s offer of S$4.79 million or S$88 per sq ft per plot ratio and L&P Blasting’s bid of S$4.1 million or S$76 per sq ft per plot ratio.
When the site was put up for sale in July, experts forecasted that the bid would range from S$68 to S$100 per sq ft per plot ratio. It is noted that it is the last parcel under the Industrial Government Land Sales (IGLS) programme for H1 2014.
However, there are similar plots nearby being sold at cheaper prices of $65 to $70 per sq ft per plot ratio, Mak noted, adding that the site is expected to be used for a single factory as strata-subdivision is not permitted for the parcel, until five years after the building is ready.
Notably, the site was triggered for sale under the reserve list after a minimum bid price of S$3.52 million was lodged.
Additionally, there is only one B2 site offered under the industrial GLS programme for H2 2014 that is smaller than 0.6 hectares. This parcel is expected to command a price lower than S$5 million, which is considered affordable by many small and medium enterprises (SMEs).
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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