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The Ministry of Trade and Industry (MTI) has launched 11 sites under its Industrial Government Land Sales (IGLS) Programme for the first half of 2017.
Of these, six sites are in the confirmed list and five are in the reserve list. The confirmed list sites will have a total area of 3.27ha, while the reserve list sites total 7.98ha.
According to Cushman & Wakefield research director Christine Li, all confirmed list site — which come with 20-year lease tenures — are targeted at industrialists rather than developers.
“Despite the slowdown in manufacturing activities arising from the slowdown in China and the domestic economy, the government has reduced the total number of confirmed list sites by one and the total GFA by about 7.5 percent or 49,000 sq ft over the next six months,” she said.
This is to ensure “adequate supply in the market for industrialists, who need their own industrial space to get ready for the upturn once the global economy is on a stronger footing,” explained Li.
She noted that the November industrial production grew at a faster-than-expected pace of 11.9 percent year-on-year, “which points to some upside in the Q4 GDP numbers, and more confidence that we will avoid a technical recession in the Q4.”
The continued supply also seem timely for industrialists since “in the earlier years when the industrial prices are high and there is a strong participation of the IGLS tenders, it could be difficult for them to secure sites at a more reasonable price,” she added.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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