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A total of 14 industrial sites were launched under the second half of 2015 ndustrial Government Land Sales (IGLS) Programme, the Ministry of Trade and Industry announced Monday (29 June).
There will be 10 Confirmed List sites and 4 on the Reserve List under the programme, with a total site area of 14.39ha.
The confirmed list will include 5 sites at the Tampines Industrial Drive, four sites at Tuas South and one at Tanjong Penjuru.The sites come in sizes ranging from 0.41ha to the biggest at 1.63ha, and gross plot ratios of 1.4 for most of the sites and 2.5 for the Tanjong Penjuru site. Zoned for Business 2 uses, the sites are offered on a 20-year lease tenure.
According to Colliers, the move to increase the plot ratio for the sites is likely due to feedback from industrialists who prefer to have more space for their customised facilities. “Unlike in 1H 2015, where the minimal plot ratio was 1.0, all the sites – including the small plots designated for industrialists for the building of their own premises – on the 2H 2015 Confirmed List have a minimum plot ratio of 1.4,” said Chia Siew Chuin, Director of Research & Advisory at Colliers International.
The government also launched four sites under the Reserve List which includes plots in Tuas South Link, Tuas Bay Close, Tampines Industrial Drive and Woodlands Height. Plot sizes range from 0.55ha to 3.33ha. The sites are zoned for B2 uses, apart from the Woodlands Height site which zoned for B1.
Sites zoned for B1 uses intended for similar uses as those zoned for B2 uses. However, B1-zoned sites are imposed with a nuisance buffer of 50m or less on the surrounding site.
The sites are offered on a 30-year lease tenure, except for the site at Tampines Industrial Drive which is offered on a 20-year lease.
Colliers said the government’s move to place all the 30-year leasehold sites on the reserve list is “a welcomed one, given the sluggish sales momentum and ample pipeline supply.”
“This will ensure that a site is only triggered for launch if there is demand for it. However, it is somewhat surprising that the Government has decided to include a new 30-year leasehold site at Woodlands Height in the 2H 2015 reserve list, given the ample supply in the north region,” it said.
It is noted that Reserve List sites are only released for sale when a minimum purchase price acceptable to the government has been made for the site, or there is sufficient market interest in the form of more than one unrelated party submitting minimum prices that are close to the government’s reserve price for the site within a reasonable period.
Image: Location of Confirmed List site at Tampines Industrial Drive (Plot 9). (Source: JTC)
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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