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A DOWNTRADE SEEN IN INDUSTRIAL RENT & PRICES

posted Jul 28, 2015, 2:47 AM by Benjamin Ng
Prices and rents of industrial properties within Singapore have continued to moderate amidst the increased supply of industrial land and area released by the govt within the past few years, JTC’s quarterly market report for Q2 2015 disclosed.

During the aforesaid amount, island-wide costs of industrial premises fell by 0.7 % on a quarterly basis and 0.9 % y-o-y.

In specific, capital values of multi-user factories fell by 0.4 % from Q1 2015 and 2.3 % a year past. That for single-user factories swayback by 1.1 % quarter-on-quarter, however was unchanged on a yearly basis.

At a similar time, overall rents of industrial properties in Singapore swayback by 0.7 % on a quarterly basis and a 2.7 % from Q2 2014.

Rrents for multi-user factories declined by 1.2 % from Q1 2015 and 3.1 % y-o-y. That for single-user factories receded by 0.5 % quarter-on-quarter, however denote a gain of 1.2 % over the previous amount last year.

Business Parks conjointly saw a quarterly and annual rental contraction of 0.3 % and 0.6 % severally, whereas that for warehouses fell by zero.1 % and 1.3 percent.

Meanwhile, the island-wide occupancy level for industrial properties improved from 90.7 % within the preceding quarter to 91% in Q2 2015. Despite the higher figure, it's still less than the height of 93.5 % seen in 2012.

The occupancy rate for business parks improved from 83 percent to 85.3 percent, while that for warehouses grew from 90 percent to 91.6%.The per centum for business parks improved from 83% to 85.3 percent, whereas that for warehouses grew from 90% to 91.6 percent.

However, the occupancy level for multi-user factories slipped from 87.5 % to 87.4 % within the quarter beneath review. Similarly, that for single-user factories swayback from 92.9 % to 92.8 percent.

Looking ahead, around 1.6 million sq m of industrial area square measure projected to enter the market in 2H 2015, together with 290,000 sq m of multi-user manufacturing plant area.

By 2016, additional 2.8 million sq m of commercial premises square measure expected to come back on-stream, together with 348,000 sq m of business park area and 710,000 sq m of multi-user manufacturing plant area.

With the big provide pipeline, industrialists can have adequate area to expand their operations within the returning years, said JTC. However, the approaching stock would surpass the annual average demand of one.1 million sq m within the past 3 years.

Credits: Commercialguru
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