Bookmark & Share
State industrial landlord JTC has kept the supply of industrial land for sale in the second half of 2018 similar to that in the first half, following the lukewarm response seen for Industrial Government Land Sales (IGLS).
For the second half of 2018, the government will release six sites with a total gross floor area (GFA) of 824,000 sq ft under the confirmed list, which is very similar to the six sites totalling 798,000 sq ft of GFA in the confirmed list for the first half.
Meanwhile, seven sites will be made available for application under the reserve list. The 13 sites add up to 12.59 hectares.
However, this time all the sites offered were “zoned for Business-2 use, compared to one zoned for Business-1 use in Braddell Road on the reserve list for 1H 2018”, noted Tricia Song, head of research for Singapore at Colliers International.
“Although on the surface, it seems that the government is taking a prudent approach by maintaining the supply of land sales. On closer examination of the bidding activities, perhaps the government could have scaled back the confirmed list given the lack of interest in the 1H 2018 IGLS sites,” said Christine Li, senior director, research at Cushman & Wakefield.
She added that demand for IGLS sites appears to have waned significantly since 2H 2017, when four out of eight tendered confirmed sites were not awarded. This comes as the sole bid received for each site was deemed too low by the government.
The same situation was observed in 1H 2018, when three out of the four sites tendered received no bids at all.
With this, Li expects the lack of enthusiasm by industrialists towards IGLS offerings in 1H 2018 to continue into 2H 2018.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
Related Articles:
Industrial investment sales hit by weak demand for land sites