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Thread: 22 industrial land sites up for grabs

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    Default 22 industrial land sites up for grabs

    http://www.straitstimes.com/premium/...grabs-20130620

    COMPANIES

    22 industrial land sites up for grabs

    Smaller parcels with shorter tenures will help cool market, say experts

    Published on Jun 20, 2013

    By Yasmine Yahya


    ANOTHER bumper crop of industrial land sites will be released for sale in a move that should help put the brakes on runaway prices.

    The increased supply comes in the form of 22 sites up for grabs under the Industrial Government Land Sales programme (IGLS) for July to December - a total area of 22.84ha.

    Like much of the land released in the first half of this year, the new batch announced yesterday includes many small land parcels with shorter tenures.

    There are 14 plots under 1ha in size and with leases of 21 years. The rest are between 1.17ha and 4.03ha with 30-year leases.

    Analysts expect heavy bidding for many sites, including ones at Gambas Crescent, Tai Seng Street and Woodlands Industrial Park as well as those in Tuas, a perennial favourite among industrialists.

    The large supply of smaller sites will help meet the demand from firms that prefer to build their own customised facilities, the Ministry of Trade and Industry (MTI) said yesterday.

    Sites with shorter tenures will also be more affordable, it added.

    R'ST Research director Ong Kah Seng said a continuous of supply of smaller sites will help cool the market as the shorter leases make property harder to flip, and thus deterring speculators.

    SLP International research head Nicholas Mak noted there has been strong demand for such plots: "It is quite hard for companies to find sites between 0.3ha and 1ha with low plot ratio in Singapore. In the IGLS tenders for the past year, the number of bids for each small site ranged from seven to 19 bidders."

    The Government has placed 19 of the new sites on the confirmed list so they go on sale regardless of interest.

    Two new parcels have been added to the reserve list, at Tuas Bay Close and Gambas Crescent. These join an unsold plot at Woodlands Avenue 12 that will be carried over from the reserve list from the first half of the year.

    Reserve list sites go on sale once a developer makes an acceptable initial offer.

    The flood of new land sites on to the market cannot come quick enough for industrialists.

    Prices of industrial property rose 4.5 per cent in January to March from the previous quarter despite cooling measures in January that included higher stamp duties, although experts see signs of a slowdown.

    R'ST Research's Mr Ong noted: "Buyers' demand for industrial properties have moderated significantly since January's cooling measures... and it has sieved out speculators and discouraged some investors.

    But while the prices of small sites are stable, those for larger plots on 30-year leases are still rising, said Soilbuild managing director Lim Chap Huat.

    "We have bid on several sites that were released in the first half of the year and prices have gone from about $70 or $80 per sq ft in January to over $100 psf now."

    Orange Tee's head of research and consultancy, Ms Christine Li, said demand for these larger sites will stay hot. "There is a unique site at Tai Seng Street launched for sale in the second half, which we believe will be keenly contested by developers," she said.

    At just 1.17ha and with a 30-year lease, the plot will appeal to small or medium-sized developers with a longer investment horizon, she added. Meanwhile, two sites in Gambas Crescent, of 48ha and 1.57ha, could fetch a price of between $80 and $120 psf per plot ratio, she said.

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    http://www.businesstimes.com.sg/prem...le-h2-20130620

    Published June 20, 2013

    22 industrial plots to be made available in H2

    19 sites will be on the confirmed list and three on the reserve list

    By ong chor hao


    THE government will make another 22 plots of industrial land available in the second half of the year, to moderate land prices and provide sufficient space for industrial end-users.

    The Ministry of Trade and Industry yesterday launched its Industrial Government Land Sales (IGLS) programme for the latter six months of the year.

    It will put 19 sites up for tender under the confirmed list, and make another three available under the reserve list.

    In total, the 22 sites will have an area of 22.84 hectares.

    The bulk of the confirmed list sites are small parcels (under a hectare each) located in areas of industrial activity.

    All but five of the plots on the confirmed list are in Tuas, with four others in the Woodlands area and one at Tai Seng Street.

    All the Tuas plots have tenures of 21 years and a gross plot ratio (GPR) of 1.0, with the others having 30-year tenures and a GPR of 2.5.

    The three reserve list sites are at Woodlands Avenue 12, Tuas Bay Close and Gambas Crescent.

    "Similar to the first half of 2013, there will be smaller sites with short tenure to help meet the demand of industrialists who prefer to build their own customised facilities," MTI said yesterday.

    "In addition, sites with shorter tenures will be more affordable to industrialists."

    Conditions introduced last year - such as tenures capped at 30 years, mandating that the gross floor area in a single unit be no less than 150 square metres and not allowing strata subdivision of development for 10 years from the date of the Temporary Occupation Permit at selected sites near MRT stations or as decided by the government - will remain.

    Ong Kah Seng, director at R'ST Research, said there was no need to introduce any radical changes in the latest IGLS as the "speculative froth" surrounding industrial properties has been tackled by the cooling measures in January, including a sellers' stamp duty on industrial property, that dealt with demand, and with IGLS supply targeted firmly at industrialists.

    Tan Boon Leong, executive director of industrial services at Colliers International, said: "The message that they are sending out is that we want to have more play for genuine industrial users, and it is a concerted effort by the authorities to have more participation, for end-users to come in."

    Nicholas Mak, head of research and consultancy at SLP International, noted that all the small parcels come with a 21-year tenure in the latest launch. In the previous round, there were two small parcels that were granted 30-year tenures.

    "This could be part of the government's effort to slow down the price growth of such industrial land parcels," he said.

    Recent industrial tenders, notably in Tuas, have seen healthy demand from end-users.

    For example, tenders for three plots of industrial land at Tuas South Street 6 that closed last week saw between seven and 10 bidders, most of whom were industrialists.

    Christine Li, head of research and consultancy at OrangeTee, said this prompted the supply of more sites so as to cater to end-users "who could be more inclined to owning industrial properties instead of leasing".

    Lim Kien Kim, executive director (industrial) at Knight Frank, said: "In addition, the transport infrastructure, both road and port, in Tuas is improving, (and) releasing more plots to meet growing demand makes sense."

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