The government has shortened the maximum tenure for industrial land under its land sales programme.
Instead of 60 years, the tenure for all sites in the industrial land sales programme for the second half of this year will be reduced to a maximum of 30 years.
This is expected to help lower the upfront cost of building factories and warehouses.
The Ministry of Trade and Industry said this on Monday as it launched the Industrial Government Land Sales Programme (IGLS) for the second half of this year.
To continue to meet potential demand for industrial land, there are 16 sites in the Confirmed List and three sites in the Reserve List, with a total site area of 23.72 hectares.
The proposed land quantum for the second half of 2012 is comparable to that of the first half of 2012.
Altogether, 47.69 hectares of land will be issued in 2012, which is 1.4 times more than that in 2011.
Similar to the first half of 2012, more sites of smaller size and shorter tenure will be released.
This will help to meet the demand of industrialists who prefer to build their own customised facilities. With shorter tenure, the sites are expected to be more affordable to industrialists.
Donald Han, special advisor at HSR International Realtors, said: “That, hopefully, would enable an easier entry level for industrialists who are looking into buying plots for their own usage, which could translate to anything from about S$50,000 to S$150,000.”
The government expects an annual supply of 500,000 square metres of multiple-user factory space to be completed in 2012 and 2013. The annual supply will be some three times the average annual supply for the past five years.
Source : CNA – 2012 Jun 11
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