Prices and rents of industrial properties moderate in 4Q2017
By Angela Teo
/ EdgeProp |
Updated, Jan 25, 2018, 6:54 p.m., to include consultants' comments.
Prices and rental rates of industrial properties continued to moderate in 4Q2017, according to the latest set of quarterly industrial statistics released by JTC Corporation. The price index for all industrial space fell by 1.1% q-o-q, while the rental index fell by 0.1% q-o-q.
"There are signs that the Singapore industrial property market is set to bottom both in terms of prices and rents," says Mak.
Meanwhile, occupancy rates of all industrial spaces rose 0.3% q-o-q in 4Q2017 to 88.9%. This was driven by the take-up of newly completed warehouse space, says JTC.
Artist's impression of JTC Space @ Tuas, a public sector factory project where close to 97% of the project's gross floor area was granted Temporary Occupation Permit (TOP) in 4Q2017 (Credit: SAA Architects)
For 2018, JTC estimates that 1.6 million sq m of new industrial space will enter the marketplace, of which 361,000 sq m will be multiple-user factory space. For the past three years, demand for industrial space came in at an average of 1.3 million sq m each year.
As new industrial supply begins to taper off in the coming years, JTC expects prices, rental rates and occupancy rates to stabilise.
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