Bookmark & Share
In a bid to provide a more detailed and comprehensive set of data, JTC has enhanced the methodology and expanded the geographical coverage of its price and rental indices for industrial properties.
In a press statement released on Thursday, JTC said: “To provide industrialists with information on price and rental movements based on property attributes, more sub-indices will also be made available. This enables industrialists to make better decisions when choosing the appropriate industrial properties for their businesses.”
Previously, the indices generally covered transactions in the Central Region, where most multiple-user factories were situated in the 1990s. But starting from the last quarter, the coverage of the new indices will be for the entirety of Singapore.
The revised indices will also represent new property types. For instance, the price index will include single-user factories, while its rental counterpart will include business parks and single-user factories.
Infographic. Source: JTC Corporation
As part of the new methodology, JTC would no longer use the 12-quarter moving average weights, while the enhanced indices will take into account more property attributes that impact prices and rents, like location, land zoning and remaining tenure.
“The new methodology groups properties with similar attributes and uses fixed weights in the computation of the indices. This makes the indices more reflective of the changes in market price and rental,” it noted.
The expanded coverage and enhanced methodology will be used for the compilation of the price and rental indices, as well as the sub-indices starting from Q4 2014, JTC added.
Commenting on the move, Colliers International’s Director for Research & Advisory Chia Siew Chuin said that while it would be a big help to Singapore’s industrial property market, more can be done by the authorities.
“JTC can continue to improve market transparency by making available more granular statistics to help industrialists and developers make informed decisions for their business investments. For example, this could include the release of sales progress and selling price information for new strata-titled industrial projects, similar to what URA is doing for the private residential market,” she added.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
Related Articles:
Lend Lease delivers INSEAD's S$55m Leadership Development Centre