Land Supply For Commercial Properties

Singapore Gov’t Hikes Land Supply For Commercial Properties

SINGAPORE – In the just announced Government Land Sales (GLS) Programme for the first half of 2023 (H1 2023), there will be a substantially higher amount of commercial space, according to a press release published by Ministry of National Development (MND) on Thursday morning (8 December, SGT).

In the Confirmed List sites under GLS H1 2023, there will be about 1.15 million sq ft of gross floor area (GFA) of commercial properties, greatly surpassing the 158,768 sq ft during the second half of 2022.

All of the commercial space will be generated by just 2 White Sites – a 1.73ha land plot in Marina Gardens Crescent and 6.8ha site in Jurong Lake District (JLD), which will respectively yield 64,583 sq ft and 1.08 million sq ft of commercial space.

In particular, the Singapore government is releasing the 6.8ha site for sale to a master developer to jumpstart JLD’s next phase of development.

“This comprises three plots of land linking the Jurong East MRT interchange station and the future Jurong Lake District station of the Cross Island Line. The intention is for a single developer to comprehensively master plan the site and use district-level urban solutions (such as a district cooling system) that will be integrated within the mixed-use development,” stated the Ministry.

“With a potential yield of about 150,000 sq m (1.61 million sq ft) of office space, 1,760 private residential units and 75,000 sq m (807,293 sq ft) GFA of complementary uses such as retail, hotel or community uses, the proposed integrated development will be progressively developed over the next 5 to 10 years to cater to market demand.”

As part of the project’s 1st phase, the successful tenderer will need to construct at least 70,000 sq m (753,474 sq ft) GFA of office space and 600 private residential units, but the tenderer will have some flexibility to spread out the remaining supply in stages based on market demand.

Moreover, the authorities added a new commercial site in Punggol with a 30-year lease in the Reserve List for GLS H1 2023.

To cater demand for workspaces near homes and as part of government’s efforts to support decentralisation, a commercial site in Punggol has been made available that can potentially generate around 8,400 sq m (90,417 sq ft) of office space.

“The release of such sites on shorter lease allows land uses to be refreshed in shorter cycles to support businesses in adapting their operations more nimbly to changing economic trends,” added the Ministry.

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