Monday, January 3, 2011

Govt to release more industrial sites for sale

MORE industrial sites are up for grabs under the government land sales programme for the first half of the year.


Four plots, two of them new, have been put on the confirmed list while seven are on the reserve list. They amount to a total of 17.67 ha of industrial space.


The Ministry of Trade and Industry (MTI) said last Friday that the supply has been replenished to meet demand for industrial land in the light of sustained economic growth. It has also reduced the project completion period for all industrial sites triggered or launched for sale from Jan 1 in order to speed up project completion times.


The sites on the confirmed list are in Ang Mo Kio Street 62, Fusionopolis Link, Irving Place and Woodlands Avenue 12.


Reserve list sites - four are newly introduced - are at the corner of Pioneer Road North and Soon Lee Road, in Gambas Avenue, Serangoon North Avenue 4 and at the corner of Kaki Bukit Road 4 and Bartley Road East.


In the second half of last year, two reserve list sites - in Ubi Road1 and at the corner of Pioneer Road North and Soon Lee Street - were sold.


Developers will note the other key announcement: the reduction of the eight-year project completion period.


Sites with a maximum permissible gross floor area of less than 50,000 sq m must be completed within five years, while those of 50,000 sq m and over must be finished within seven years.


The MTI said the change is to ensure a 'more timely supply of industrial space to meet demand'.


The industrial sector's outlook has been looking rosy. According to property consultant DTZ, the average monthly gross rent for ground-floor private industrial space grew 2.5 per cent to $2.05 per sq ft (psf) in the final quarter of last year.


Average monthly gross rents for upper-storey space are at $1.65 psf - up 3.1 per cent from the third to the fourth quarter, and 6.5 per cent ahead over the same period in 2009.


Industrial rents are also expected to continue to rise this year but at a more moderate pace.

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