Rentals for overall industrial space fell by 1.3% on year — the first year-on-year decline since early 2010, says JTC
SINGAPORE — Industrial land prices and rentals fell in the third quarter this year.
The latest quarterly report on industrial properties by JTC Corp showed that industrial land prices in Q3 fell 0.9 per cent from the previous quarter.
This is compared with a 0.7 per cent rise in the previous quarter. However, on a year-on-year basis, industrial land prices edged up 0.2 per cent.
Rentals for overall industrial space eased 1.8 per cent on quarter and fell by 1.3 per cent on year.
JTC said this is the first year-on-year decline in rentals since early 2010, in contrast to the average increase of around 8 per cent per year over the past four years.
Occupancy rate in the industrial property market edged up slightly by 0.2 percentage point on-quarter, driven by the warehouse segment, and mainly due to the take-up of a few new single-user warehouses. On a year-on-year basis, it fell by 1.8 percentage points.
Tender prices in the Industrial Government Land Sales (IGLS) sites targeting multiple-user developments have also declined.
JTC pointed out that the highest tender bids received for two large Tuas sites in August and September were about 50 per cent below the highest bid for another Tuas site, whose tender closed in August last year.
It added that a similar trend was also observed for large IGLS sites in the North Region and the number of bidders per site also fell in recent tenders.
Looking ahead, JTC said about 1.2 million sqm of industrial space is expected to come on stream in the fourth quarter this year.
This will bring the supply of industrial space for the full year to 3.1 million sqm.
Another 2.6 million sqm of industrial space is expected to be released next year and 1.9 million sqm in 2016.
PUBLISHED: 4:04 AM, OCTOBER 24, 2014
Source: today (24 oct 2014)