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Industrial properties in Singapore suffered price drops of three percent and 9.1 percent in Q4 2016 on a quarterly and annual basis respectively, according to JTC.
At the same time, rents of such spaces dropped by 0.5 percent compared to the previous quarter, and 6.8 percent versus the corresponding period in 2015.
Nevertheless, the occupancy rate of industrial properties here rose slightly by 0.4 percentage points to 89.5 percent during the four quarter, but it dipped by 1.1 percentage points year-on-year.
As of Q4 2016, there were around 1,600 units available for sale in uncompleted strata-titled developments. Measuring a total of about 548,000 sq m, this comprises around four percent of the existing multiple-user factory stock.
Looking ahead, JTC expects the prices and rentals of industrial space to soften further, in light of the substantial supply entering the market over the next few years.
“In 2016, the total stock of industrial space increased by 1.8 million sq m. In 2017, about 2.4 million sq m of industrial space, which includes around 548,000 sq m of multiple-user factory space, is estimated to come on-stream.”
“This is higher than the average annual supply and demand of around 1.8 million sq m and 1.3 million sq m respectively in the past three years. This is likely to exert further downward pressure on occupancy rates, prices and rentals, translating to reduced business cost for industrialists,” the agency explained.
In the multiple-user factory segment, approximately 548,000 sq m of space is projected to enter the market this year, and another 435,000 sq m in 2018, added JTC.
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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