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The number of industrial properties put up for mortgagee auction grew from 17 units in 2014 to 36 last year, reported Singapore Business Review citing a Colliers International report.
Colliers attributed the increase in industrial mortgagee listings to tough leasing conditions within the market.
“Many small-scale investors, who entered the industrial market prior to the government’s imposition of Sellers’ Stamp Duty and TDSR in 2013, are now finding it challenging to service their bank loans,” noted Grace Ng, Deputy Managing Director at Colliers International.
The consultancy stated that most of the industrial properties auctioned were small strata-titled industrial units found in various locations such as Ubi, Boon Lay, Geylang and Kaki Bukit.
“In addition, owing to the macro-economic uncertainties, end-users and industrialists were cost sensitive and cautious on their space requirements. Competition for qualifying industrial tenants has also intensified, following the net addition of approximately 5.7 million sq ft of new multi-user factory space in 2014 and 3.7 million sq ft in the first nine months of 2015,” said Ng.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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