Strata industrial sales down in Q2, but leasing gained momentum: Colliers

By Feily Sofian / Colliers International, The Edge Property | July 9, 2015 10:26 AM SGT
Sales of strata industrial properties continued to languish from stringent loan curbs and interest rate jitters, said Colliers Research. The number of caveats lodged dipped from 220 in 1Q2015 to 206 in 2Q2015.
Developers were also neck and neck with sellers looking to offload their units in the secondary market. Consequently, only one new strata-titled industrial project made its debut in Q2. The 229-unit Proxima@Gambas, which has a 30-year leasehold tenure, saw selected units being released for sale in late June at prices starting from $225 psf.
Leasing market saved the day. The number of leasing deals (for factory, warehouse and business park space) increased from 651 in March 2015 to 756 in April 2015, to 836 in May 2015, underpinned by sustained interest from firms in growth industries such as data centres and those dabbling in high-technology products.
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Rents for upper-storey prime factories slipped 1% quarter-on-quarter (QoQ) to $2.04 psf per month in 2Q2015. Those for high-specs factories inched up 0.6% QoQ to reach $3.13 psf per month on the back of limited supply.
Colliers expects rents of prime multi-user conventional industrial space to ease further and possibly correct by up to 2% over the next six months. For business parks and independent high-specs industrial premises, where supply is expected to remain tight for the rest of 2015, rents could register a marginal increase of up to 1% over the same period.