The sites on the confirmed list of the IGLS program (Credit: MTI)
SINGAPORE (EDGEPROP) -The Ministry of Trade and Industry (MTI) on June 30 launched its Industrial Government Land Sales (IGLS) programme for the second half of the year.
This comprises four sites from the confirmed list and three sites from the reserved list, totalling a site area of 6.36 ha, or 684,584 sq ft.
The anticipated gross floor area for these seven sites could potentially reach 1.35 million sqft, up 37% from the IGLS program in the first half of the year, according to Tan Boon Leong, the executive director of logistics and industrial leasing at JLL.
“This is the largest industrial land supply from the bi-annual IGLS programme since 1H2020,” says Tan. In 1H2020, a total of eight parcels with a combined site area of 7.12 ha, or 766,390 sq ft was launched, yielding a potential GFA of 1.41 million sq ft.
Reserved list sites, under the IGLS 2H2022 program (Credit: MTI)
Underpinned by a robust manufacturing demand which had recorded the seventh consecutive quarter of growth in the first quarter, the all-industrial rental index and property index rose by 1% q-o-q and 2.1% q-o-q respectively, according to JTC statistics. It is the highest growth recorded since 2013 and 2014 respectively.
“The government had likely taken into consideration Singapore’s industrial property market performance in the first quarter while calibrating the latest IGLS programme,” says Tan.
However, a larger quantum of land parcels sit on the reserve list — 3.52 ha, or 378,890 sq ft, yielding a potential gross floor area of 0.86 sq ft. This reflects underlying caution stemming from geopolitical tensions and business uncertainties, according to Tan.