SINGAPORE - Tighter development measures are being introduced for certain industrial sites, even as the government rolls out more land in an attempt to moderate industrial land prices.
Specifically, successful bidders of selected sites will be required to build a minimum number of large factory units to cater to the needs of SMEs who need larger industrial spaces, said the Ministry of Trade and Industry (MTI).
This announcement came on the back of MTI announcing that a total of 22 sites - comprising 13 sites on the confirmed list and nine sites on the reserve list - with total site area of 24.84 hectares has been set aside for industrialists.
This is comparable to the 19 sites - 16 sites on the confirmed list and three on the reserve list which totalled 23.72 ha - released in the second half of this year.
In 2012, a total of 47.69 ha of industrial land was released; this is about 1.4 times than that released last year.
The conditions encourage the development of industrial spaces that are more useful for genuine industrial space users, said Nicholas Mak, executive director, research and consultancy, at SLP International.
"Interestingly, all the 13 sites on the confirmed list are zoned B2. This further shows the government's intention to offer more supply for manufacturers and the heavier users of industrial space," he said.
Indeed, the driving reason for this could lie in the fact that the Tuas West Extension and the Thomson Line station locations are confirmed, making it the opportune time to encourage further development of the outlying areas (in which all the sites on the confirmed list are located), said Chia Siew Chuin, director of research and advisory at Colliers International.
"Furthermore, as there is already an ample supply of B1 industrial space, injecting B2 sites in the upcoming H1 2013 Confirmed List will ensure that a better balance is maintained," she said.
Of the 13 plots on the confirmed list, eight are less than 1.0 ha; six small sites (each less than 0.5 ha with a plot ratio of 1.0 and land tenure of 22 years) in Tuas South have also been released.