Amid the economic downturn, selling of government-owned industrial lands will temporarily be suspended until the first half of 2009 as part of the austerity measure to combat financial uncertainty.
Only those in the reserve list will be allowed for sale. These will be made available if ever developers will show interest.
According to the Trade and Industry Ministry, it plans to include the five-hectare location at Tampines Industrial Avenue 4 for outright sale in the reserve list for the first half next year. Reports claimed that this site was the only industrial land ready for bidding this year.
The components of the reserve spaces for industrial land consist of eight locations, six of which will be carried over this year to the first half of the coming year.
The availability of the two new locations such as the Kaki Bukit Road and Woodlands Industrial Park will substitute the two reserve sites that were recently purchased this October.
The Ministry claimed that changes in the plan were the result of the existing market conditions, intended to mitigate the aggravating effects of the recession.
Investors’ demand for the industrial market declined this year as prices and rents began to plunge, according to the analysts.
The temporary restriction of outright sales was patterned to the government’s earlier announcement of suspending outright sales of other land types in the same period, which was considered as a timely endeavour.
“The recession, weak trust rating, and oversupply are indicators that only few are willing to take the risks of making outright sales of industrial sites,” said Dominic Peters, director of industrial services, Savills Singapore.