JTC Corporation on Monday launched two confirmed-list sites in Tuas South and Tampines North for sale, along with another reserve-list site in Tuas South.
All three sites are zoned for Business-2 development, that is, heavier and more pollutive industrial use.
The 2.7-ha site in Tampines North Drive 1 (Plot 1) is the largest site on the second half 2014 industrial government land sales (IGLS) confirmed list.
It has a lease of 30 years and a maximum gross plot ratio of 2.5, which means it will most likely be developed into a multiple-user industrial site, said SLP International executive director Nicholas Mak.
Its location, near the Tampines Expressway and with a waterfront facing of Sungei Api Api, is considered attractive, he added.
The previous Tampines industrial state land sold went to Oxley Bliss Pte Ltd in August 2012 for S$77 per square foot per plot ratio (psf ppr). That one was also B2-zoned and of a similar size to the subject site.
Another site along Loyang Way, a multiple-user B2-zoned project, sold for S$111 psf ppr in mid-2013.
Mr Mak said: “Since there are few industrial sites in the east available for sale in the IGLS programme (compared to the large supply of industrial space in the north and west), this subject site is highly attractive. “However, the large size of this project and the current softer market sentiments could limit developers’ interest in it.”
Mr Mak expects four to seven bids, with a top bid of S$70 to S$82 psf ppr.
Another analyst, R’ST Research director Ong Kah Seng, is more bullish; he expects five bids, and a top bid of S$90 to S$105 psf ppr.
The 0.8-ha site in Tuas South Street 9 (Plot 50) has a 20-year eight-month tenure with a maximum gross plot ratio of 1.0.
This plot sits between two land parcels that were sold in May this year, albeit with longer tenures. Taking a cue from their pricing and adjusting for the softer industrial property market, Mr Mak said he expects this plot to attract six to eight bids with a top bid of S$60 to S$65 psf ppr.
R’ST Research’s Mr Ong, citing the plot’s ideal size, a sweet spot between 0.5-ha and 1-ha for major industrialists, was more optimistic, forecasting five to 10 bids and a top bid of S$65 to S$75 psf ppr.
The tenders for both confirmed list sites close on Nov 24.
Separately, the reserve list site in Tuas South Street 6 (Plot 46) has a 20-year four-month tenure and a maximum gross plot ratio of 1.0.
Analysts expect the site to be triggered for sale by the first half of 2015 and to eventually be sold at S$60 to S$75 psf ppr. Reserve list sites are launched for tender only upon successful application by a developer at a price deemed acceptable by the state.