Table 3.2: Upcoming Major Private Factory Completions (2015) (cont’d)
Development
Location
Planning
Region
Factory
Type
Developer
Estimated
GFA (sq ft)
Single-user
factory
Benoi Road
West
Single-user
Commonwealth
Capital
292,000
Single-user
factory
Kaki Bukit
Road 4
East
Single-user
SEF Group
331,000
Single-user
factory
Tuas South
Avenue 5
West
Single-user
Shell Eastern
Petroleum
384,000
Single-user
factory
Tuas South
Boulevard
West
Single-user
Jurong Shipyard 1,294,000
T99
Tuas South
Avenue 10
West
Multiple-user
(strata for sale)
Soon Hock
Group
597,000
Tagore 8
Tagore Industrial
Avenue
North
East
Multiple-user
(strata for sale)
Chiu Teng
287,000
The Westcom Tuas South
Avenue 6
West
Multiple-user
(strata for sale)
Transurban
Properties
238,000
Source: JTC, DTZ Consulting & Research, February 2015
While the government continues to ensure sufficient land through the IGLS programme,
the pipeline supply under the H1 2015 programme is more moderate
The government continues to ensure an adequate amount of industrial land supply, as it made available
14 sites (nine sites in the Confirmed List and five sites in the Reserve List) in its H1 2015 Industrial
Government Land Sales (“IGLS”) programme (total site area of 14.08 ha). However, this was lower than
the 20.42 ha and 18.87 ha in the H1 2014 and H2 2014 programmes respectively.
The sites offered were mainly in Tuas and Tampines and continued to have tenures of 20 to 30 years,
so as to reduce the upfront costs for industrialists looking to develop their own properties. In addition,
majority (11 sites) of the land parcels were small (0.5 to 0.8 ha) which were for end-users to build their
own single-user developments, while larger parcels (three sites) were around 1.4 to 3.3 ha.
While tender prices for large IGLS sites targeting multiple-user developments moderated in 2014 amid
efforts by the government to induce more prudent bidding, the demand for small IGLS sites remained
relatively strong.
3.3 Rental Index
Moderated demand and significant supply weighed on multiple-user factory rentals
The declining occupancy resulting from the excess supply in the factory market in 2014, particularly from
strata-titled factory units for sale, weighed on multiple-user factory rentals. With industrialists continuing
to face challenging operating conditions on both the external and domestic fronts, many remained
cost-sensitive. Coupled with the increased competition for qualifying tenants, private multiple-user
factory rentals fell for the first time since 2009 by 0.7% in 2014 (Figure 3.3). According to JTC, the
monthly median gross rents
5
for private multiple-user factories were $2.00 per sq ft as at Q4 2014.
INDEPENDENT MARKET STUDY
5
Based on islandwide rental transactions in the quarter.
SABANA REIT
|
ANNUAL REPORT 2014
30
