Singapore is set to auction off an additional 29% more industrial land in the first half of 2024 in the biggest hut land hunt in a decade, but experts say bidding will be weak as the market slows. I predict that it will.
Singapore’s Ministry of Trade and Industry (MTI) announced that five sites with a total land area of 8.3 hectares (34 acres) will be made available to developers when announcing the industrial land sales program from January to June. This is the third more land than the 6.43 hectares that the Ministry made available through five auctioned sites in the second half of 2023.
With Singapore’s industrial vacancy rate already rising to 11% and rent growth slowing to 2% in the third quarter, the Real Estate Board expects bids for sites will continue to be weak amid the economic downturn, according to Colliers. Expect.
Singapore’s H1 2024 land sales program, part of a series of bi-annual announcements, is the first six-month plan announced by MTI since H2 2014, when the government made available a total of 9.5 hectares of industrial land. This is the largest. , based on data from Huttons Asia
The largest of the five sites in the upcoming program is a 4.45-hectare plot at Curranway in the McPherson district, which is due to become available in June with a 32-year use period.
In the western region of the island, two adjacent plots along Penjul Lane and Penjul Road are scheduled to be auctioned in April and May respectively, while the 0.9-hectare plot 8 Jalan Papan near Jurong district will be auctioned next month. It will be put on the market. The 0.5-hectare site at 5 Tampines North Drive, on the island’s easternmost tip, will be opened to potential buyers in February.
In addition to the main programme, the Ministry of Trade, in the same announcement, revealed a preliminary list of five additional sites covering 5.46 hectares, which could be put up for bid if potential buyers express sufficient demand for the additional sites. There is.
In a statement on Wednesday, MTI stressed that it will continue to offer more land in the future to ensure an adequate supply of industrial space in the Lion City.
In addition to increasing supply in the coming months, the Singapore government is also planning to add industrial land in the longer term, with reports earlier this week revealing plans to repurpose up to 172 hectares of industrial land near Singapore. became. Construction of a new port in the Tuas area by 2029
Approximately 1 million square meters (10.7 million square feet) of new industrial land will enter the market between 2024 and 2026, 43% more than the average leased area of 700,000 square meters over the previous three years, authorities said. is expected to be vacant. The 2023 average is likely to be 11.5%, and from 2018 he will rise further from the 2022 market average of 10.6%.