Sengkang West IGLS awarded to Soilbuild for $156m

About Sengkang West IGLS Overview

Sengkang West IGLS Site

JTC launch of the Sengkang West site, which is under the IGLS programme, reflects the government’s commitment to providing an adequate supply of industrial space in the country. Jointly administered by JTC and the ministry, the IGLS programme offers a steady channel to allocate state land for industrial use to the private sector by tendering out sites.

Some of the current offering’s more noteworthy sites include the 2.32-ha Sengkang West site, zoned for B2 general industrial use. With a gross plot ratio of 2.5 and 33-year lease, the site has been designed to cater to the requirements of developers, companies and the wider industrial value chain.

This is one of the significant policy changes that set this plot apart: the lease model. The tradition was for a 30-year term, but this was increased to 33 years in 2018/2019 after the three year option for extension kicked in. This is to accommodate developers’ investment plans and enable businesses to recoup their upfront capital costs while remaining in line with Singapore’s long-term land-use plan. Those whose industries are more complex to set up, for example, whose advanced manufacturing or logistics processes need heavy infrastructure  would gain much-needed elasticity from this extra runway.

Result of the Sengkang West Land Bid

Sengkang West Land Bid

The Sengkang West plot is the last confirmed list site to be rolled out under the first half of the 2025 IGLS programme. Its release is the latest in a series of moves by the government to boost land supply amid strong demand for industrial space. Industrial rents and the prices of industrial property have been rising in recent years partly because of a shortage of new land. The government is aiming to supply business demand, to get market dynamics on an even keel, and to give developers a pipeline of opportunities by releasing more sites. The site will tender to a close on 19 th of August 2025 and is anticipated to garner great interest from well established industry contenders and from investors looking for power for long-term growth.

 

Sengkang West Nearby Amenities

The Sengkang West location enjoys an ecosystem that extends beyond that of a typical industrial park. Given That older estates have fewer facilities, and this site is located near to mature residential and commercial centres, residents can have ample convenience and quality living. Any businesses functioning here will be closely linked, not only to transport infrastructure, but to the services which cater for the daily needs of employees.

Accessibility via transportation is one of the biggest benefits of the site. Being a part of Singapore with good connectivity to the Central Expressway (CTE) and the Tampines Expressway (TPE), it makes the region accessible for smooth distribution throughout the country. Main roads like Sengkang West Way and the Seletar Aerospace Flyover offer good links via direct connection, facilitating reduced travelling time for logistical movements. There’s also the nearby Sengkang MRT and LRT interchange for staff members’ commute via public transport, which provides easy access to the rest of the North-East Line. That road and rail connectivity makes it easier for companies to attract, and keep workers.

The surrounding area has more to offer than easy infrastructure and it’s ideal for work or lifestyle requirements. The Fernvale estate near the site is home to Seletar Mall which offers shopping and dining options, as well as the first cineplex in the vicinity. A new integrated community hub ready to serve you – coffee shop, childcare centre, bustling with activity and laughters. Industrial site workers could have access to inexpensive food options and daily services less than a short drive away.

Recreational amenities come with another layer of value. The Sengkang Sports Centre, which includes swimming pools, water slides, and indoor sports halls, is nearby and serves residents as well as workers. Healthcare is also easily accessible, with Sengkang General Hospital and Sengkang Community Hospital located in the vicinity. These are healthcare delivery vectors that provide comprehensive services in the event of an emergency or for routine matters. Parks like Sengkang Riverside Park also help to improve the overall environment by giving workers the chance to engage in outdoor pursuits, making for a happier working environment.

Collectively, these amenities position the Sengkang West site as a model example of how industrial developments in Singapore are being incorporated into the broader urban landscape. It’s not just about factories and warehouses, but building industrial estates that are linked to dynamic communities, which are more attractive for businesses and employees.

 

Potential of the Site

What made the Sengkang West site interesting was a mix of location, lease terms and blending with the larger development. Geographically, it is centrally located in Singapore’s North-East and has been identified as a region of long-term growth. Especially with it being so near Seletar Aerospace Park. The park has been transformed into an aerospace cluster, drawing major players in aircraft maintenance, repair and manufacturing. Businesses situated in Sengkang West may also potentially tap on this ecosystem by means of a supply chain or service partnership or through greater proximity to customers.

Just as significant is the parcel’s proximity to the Punggol Digital District, which is taking form as a major node in the North Coast Innovation Corridor. It is hoped the district will lure technology companies, digital businesses and innovation-led companies. To be in close proximity of such a cluster offers chances for businesses in Sengkang West to tap into a broader base of companies, talent and partnerships. This regional situating increases the long-term desirability of the location, particularly among firms seeking to target the innovation-led economic policy of Singapore.

The 33 year lease will also add further weight to your case as an investment. For developers, the greater carry time gives them more leeway to build facilities specifically designed for the needs of a long term tenant. The certainty of a longer lease is something for which occupiers can justify investing in infrastructure, plant or a particular type of operation. That is particularly true for capital-heavy industries such as precision engineering, food processing or clean technology, where the payback periods are measured in years.

From a market timing perspective, Sengkang West site is being launched on the back of demand for industrial space exceeding supply. The additional land supply being provided is facilitating rental growth and avoiding the market from overheating. For business here, that means more choices and a better opportunity to find appropriate space at a reasonable cost. For developers, it is an opportunity to develop assets that will still be in demand, particularly with Singapore’s continued push to draw high-value industries and reinforce its status as a global hub.

Comparison with Other IGLS Sites

Compared to other IGLS sites for 2025, the Sengkang West site comprises a special proposition. Locations at Tuas, for instance, are more targeted at heavy industries, marine and logistics players in view of the nearby Tuas Mega Port. Although these sites take advantage of scale and a synergy with port functions, they may not be suitable for businesses that are closer to residential labour force centres or those that require integration with mixed-use settings.

On the contrary, Tampines North and Kallang Way sites fulfil various strategic roles. This makes Tampines North attractive to sectors aiming for Singapore’s eastern flank such as logistics players who require immediate access to Changi Airport. Kallang Way, which is more inner city, is well-suited for urban logistics, data centres and light industrial uses that rely on central location. Amid this contrast, Sengkang West is where you can find both access to Singapore’s heartlands and proximity to innovation precincts in the north-east. It will probably draw interest from companies that straddle manufacturing and services and companies eager to access the growth of adjacent clusters.

 

Sengkang Way IGLS Registration of Interest


Review of Sengkang Way IGLS

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