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Overall island-wide industrial property rents in Singapore dropped 1.2 percent quarter-on-quarter to S$2.08 per sq ft per month in Q3 2016, as rents across most locations declined, a Knight Frank report revealed.
The Pioneer – Tuas cluster posted the highest decline of 9.6 percent quarter-on-quarter, primarily due to the under-performing oil and gas industry, related offshore and marine services, and general manufacturing which pulled down the activities of related and supporting trades agglomerated in the B2 cluster.
Kaki Bukit – Ubi – Paya Lebar – Eunos and Kallang – Geylang – Bendemeer clusters saw rents increase by 2.6 percent and 1.3 percent quarter-on-quarter respectively.
Knight Frank noted that this cluster is more resilient due to their status as an established industrial hub with complementing amenities such as food centres.
“It is also supported by the reduced disamenities like improved traffic conditions for industrialists in the area given the near completion of stage-three Downtown Line by 2017 which covers stations such as Bendemeer, Ubi and Kaki Bukit,” it added.
Business park rent eased by 4.1 percent quarter-on-quarter to S$4.22 per sq ft per month during the period under review on the back of the challenging business climate with tenants exercising greater caution in rental expectations. Nonetheless, business park space equipped with ready-amenities, flexible layout, good connectivity and clustering effect with spill-over benefits remain well-occupied.
Meanwhile, the overall price of strata-titled factory units is higher for the first two months of Q3 2016 at S$441 per sq ft compared to the S$375 per sq ft registered during the whole of Q2 2016.
Knight Frank attributed the increase to the resilient average price of 60-year and freehold resale transactions.
Resale prices of freehold factory units climbed from S$641 per sq ft in Q2 2016 to S$664 per sq ft in Q3 2016.
Average prices of upper-floor strata-titled warehouse units, on the other hand, fell in tandem with softening demand from S$564 per sq ft in Q2 2016 to S$504 per sq ft in Q3 2016.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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