Written by Nicholas Mak
Monday, 30 December 2024
Summary
(1) Among the ten industrial land parcels in the Confirmed Lists of the Industrial Government Land Sale (IGLS) programmes for 2024, the government has only sold four sites to date.
(2) The government is putting up seven industrial land parcels in the Confirmed List of the IGLS programme for 1H 2025. The seven sites has a combined land area of 1.045 million sq ft, which is 68.3% more than the total land area of the five sites in the Confirmed List of the 2H 2024 IGLS programme.
These seven new sites can yield a total of 2.47 million sq ft of industrial space, which is 74.9% greater than the industrial space that can be developed from the five sites in the Confirmed List of the existing IGLS programme.
(3) One of the reasons for the government to increase the supply of industrial development land in 1H 2025 is to maintain a steady supply of industrial space beyond 2027. The projected supply of single-used factory space will decline from 5.16 million sq ft in 2025 to just 2.2 million sq ft after 2027.
Another reason is to moderate the growth of industrial property prices and rents which had increased for four consecutive years.
Introduction
In the Industrial Government Land Sale (IGLS) programme for the first half of 2025 (1H 2025), the Singapore government will be offering for sale seven industrial land parcels in the Confirmed List and three sites in the Reserve List.
The land parcels in the Confirmed List will be launched for sale based on a schedule, while the Reserve List sites will only be launched for sale after an interested developer has successfully applied for it to be released for sale.
Brief review of 2024 IGLS programmes
In 2024, the government offered a total of ten industrial land parcels for sale in the Confirmed List and nine sites in the Reserve List. Among the ten Confirmed List industrial property sites, the government has sold four land parcels and rejected the top bid for one of the IGLS tenders.
Three IGLS tenders did not receive any bids and hence, the government did not sell the land parcels. These three sites are meant for single-used factories. The tenders for two of the sites would only close in 2025.
Table 1: Industrial Government Land Sale sites launched in 2024
IGLS programme of 2024 | No. of IGLS tenders launched in 2024 |
Industrial site sold | 4 |
IGLS tender not awarded | 1 |
No bid received for IGLS tenders | 3 |
IGLS tenders to close in 2025 | 2 |
Total No. of IGLS tenders launched in 2024 | 10 |
Source: Mogul.sg Research, JTC
None of the Reserve List industrial sites in 2024 were triggered for tender by developers. At most, the government would have sold only six out of the ten Confirmed List industrial sites in the 2024 land sale programmes.
Significant increase in industrial land supply
The government is increasing the supply of industrial land for sale in the IGLS programme for 1H 2025. The Confirmed List of the IGLS programme usually consists of 3 to 5 sites. For the upcoming IGLS programme for 1H 2025, the government is putting up seven sites in the Confirmed List with a combined land area of 1.045 million sq ft, which is 68.3% more than the total land area of the five sites in the Confirmed List of the 2H 2024 IGLS programme.
In addition, these 7 Confirmed List sites to be launched in 1H2025 can yield a total of 2.47 million sq ft of industrial space, which is 74.9% greater than the industrial space that can be developed from the five sites in the Confirmed List of the existing IGLS programme.
Table 2: Confirmed List of Industrial GLS sites to be launched in first half of 2025
Launch date (month-year) | Location | Industrial zoning | Estimated land area (sqm) | Plot ratio | Lease (years) |
Feb-25 | Plot 3, Jalan Papan | B2 | 7,200 | 1.4 | 20 |
Feb-25 | Penjuru Road | B2 | 20,900 | 2.5 | 30 |
Mar-25 | Gul Drive | B2 | 4,900 | 1.4 | 20 |
Mar-25 | Tuas Avenue 11 | B2 | 28,000 | 2.5 | 30 |
Apr-25 | Ubi Avenue 1 | B2 | 6,100 | 2.5 | 20 |
May-25 | Kaki Bukit Avenue 5 | B1 | 7,000 | 2.5 | 30 |
Jun-25 | Sengkang West | B2 | 23,000 | 2.5 | 30 |
Source: Mogul.sg Research, JTC
One of the reasons for the government to increase the supply of industrial development land in 1H 2025 is to maintain a steady supply of industrial space beyond 2027. The projected supply of single-used factory space will decline from 5.16 million sq ft in 2025 to just 2.2 million sq ft after 2027.
The industrial factories to be built on the land that would be sold in 2025 may be completed between 2028 and 2030. Hence, the government would need to sell enough industrial land in 2025 to meet the demand beyond 2027.
In addition, both industrial property price and rents have increased for four consecutive years. Industrial space is one of the main types of business space. If industrial property price and rents were to rise at a heightened rate, it would reduce the competitiveness of Singapore as a business location for a wide range of firms including manufacturing, logistics and technology.
Hence, the increase in the supply of industrial land is to moderate the growth of industrial property price and rents.
Furthermore, among the ten industrial land parcels for sale in the Confirmed List of the 2024 IGLS programme, the government has only sold four sites to date. Therefore, by increasing the number of Confirmed List sites in the IGLS programme for 1H 2025, it would increase the chances that there would be sufficient supply of industrial space in the pipeline to meet future demand.
First ‘B1’ zoning industrial site in 10 years
The government is putting up a 30-year leasehold site at Kaki Bukit Avenue 5 that is zoned for ‘B1’ industrial development. This is the first time in 10 years that the government is offering a B1 industrial land parcel for sale in the Confirmed List of an IGLS programme.
Industrial sites zoned as B1 are for light and clean industries. All the industrial land parcels in the Confirmed List of the previous IGLS programmes for the past ten years were zoned ‘B2’, which are for general industries.
The inclusion of a B1 industrial site in the upcoming IGLS programme could be a response to the needs of non-pollutive industrial users such as businesses in the technology and information communication industries for a new factory in a more centralized part of Singapore such as Kaki Bukit.
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