ON the back of good demand for industrial space, JTC Corporation yesterday launched a 235,400 sq ft land parcel at Pioneer Road/Tuas Avenue 11 for sale, and market watchers estimate that the site could fetch as much as $7.6 million - or $23 per square foot per plot ratio (psf ppr).JTC launched the site after it received a bid of $5.9 million on July 18. Observers, however, said that the site could fetch more than the initial bid.
Savills Singapore's director of industrial business space Dominic Peters pointed out that in February, an industrial site at Tuas Bay Drive/Tuas South Avenue 3 was awarded for $23 psf ppr. That site had a 60-year lease.
While the lease for the site launched yesterday is for 30 years, Mr Peters expects the site to fetch $20-23 psf ppr due to good demand. The price translates to between $6.6 million and $7.6 million.
'We anticipate very strong demand from end-users,' he said. Companies in certain sectors - such as oil & gas and construction - are doing well at the moment and could be interested in the site, he said.
The site has a 1.4 plot ratio, giving it a gross floor area of 329,600 sq ft. It is zoned for 'Business 2' use, which means it can be used for clean, light and general industrial purposes, and warehousing.
The land parcel was on the Reserve List before its sale was triggered by the $5.9 million bid. Now, it is being launched under the Confirmed List.
The government had previously announced that it will launch two industrial sites under the Confirmed List and seven industrial sites under the Reserve List in the second half of 2007 under its Government Land Sales programme.
The tender for the site will close at 11 am on Oct 18.
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