In March 2024, JTC Corporation placed a 1.86-hectare tract on Lok Yang Way on the Industrial Government Land Sales (IGLS) Reserve List. The idea was to align supply with market demand. The site was in the Jurong industrial zone and was classified Business 2 (B2). It had a gross plot ratio (GPR) of 2.5 and a 30-year rental. The market was particularly interested in the location since it was close to Tuas Port, major highways, and other industrial districts. The property was placed up to bid in August 2024 and garnered at least one fair offer, suggesting that the demand for excellent industrial land was still robust even if the economy as a whole was sluggish.
There were several strong bids, and Soilbuild Group Holdings Ltd won the auction and bought the spot for S$70.08 million. This means that the land is worth about S$140.29 per square foot per plot ratio (psf ppr), which is a fair price for the site’s long-term use and good location. The rate also shows that builders are sure that Jurong will continue to grow in the years to come, especially since the Tuas Mega Port, the Jurong Innovation District, and the Jurong Lake District are all becoming important economic hubs. Soilbuild’s plan to turn the land into a ramp-up B2 industrial building, which is now called LY Connection, is in line with the needs of modern businesses for places that are efficient, flexible, and ready for logistics.
Taking into account the rental return, the expected land rate means that future sale prices will probably be between S$250 and S$400 psf, based on the type of unit, floor level, and specs. B2 industrial rental rates in the west are around S$1.50 to S$2.20 psf/month. LY Connection could offer good gross rental yields of 6% to 8%, based on how well the property is managed and how full it is. Because the site has column-free design, ramp-up access, and allows foreign ownership, it is ready to attract both end users and investors looking for long-term returns in an industry market that is already tight.
In addition to money, the Lok Yang Way GLS award is about bigger issues in Singapore’s industry planning. As part of its goal to update old industrial stock and support sustainable, future-ready projects, JTC has decided to release a high-specification B2 site in a good location. The Jurong region is still an important part of the country’s economic change, and Soilbuild’s winning plan fits with the government’s goal of encouraging green building, more efficient land use, and support for high-value manufacturing sectors. As LY Connection grows, it won’t just be a business move; it will also be a sign of the future.