Staff Reporter
Published:
Photo by Jhonny' Mages
Warehouse was the only segment with rising occupancy at 89.7% in Q3.
Singapore industrial property prices outpaced rents in the third quarter, rising 4.2% year-on-year (YoY) against rental growth of 2.1%, according to JTC.
Overall occupancy eased 0.2 percentage points quarter-on-quarter (QoQ) and year-on-year to 88.9%.
JTC attributed the decrease to tenants vacating older single-user factory and multiple-user factories to be developed and slower demand for suburban business park.
Overall rental index rose by 0.5% QoQ and 2.1% YoY in line with inflation. Overall price index rose at a slightly faster pace of 1.0% QoQ and 4.2% YoY, amidst resilient demand and low interest rates.
Warehouse was the only segment that saw an increase in occupancy, up 0.3 percentage points QoQ to 89.7%, whilst multiple-user factory stood at 90.3%, single-user factory at 89.1%, and business park at 77.2%.
All segments saw an uptick in rent, with Multiple-User Factory up 0.3% QoQ and 1.6% YoY, followed by Single-User Factory up 0.7% QoQ and 3.1% YoY, Business Park up 0.1% QoQ and 0.7% YoY and Warehouse up 1% QoQ and 2.8% YoY.
Prices increased for all segments, with multiple-user factory up 1.1% QoQ and 5.3% YoY, whilst single-user factory rose 0.8% QoQ and 1.5% YoY.
For industrial government land sales in Q3, tenders for two single-user sites and one multiple-user site closed.
6 Tuas Avenue 14, a single-user development, and 5 Tuas Avenue 13, a multiple-user development, were successfully awarded, whilst the single-user site at Jalan Besut closed with no bids crossing the reserve price.
JTC allocated a total of 80,400 sq m of ready-built facilities to industrialists in Q3, with total returns of 105,800 sq m. About 71% of returns were due to natural expiries or consolidation of operations.
JTC forecasts 0.3 mil sq m of supply to be completed in Q4, according to planning approvals as of end-September. 56% of the supply is single-user factory space, whilst 44% is for warehouses.
An average annual supply of 1.2 mil sq m of industrial space is expected to be completed between 2027 to 2030, with about 59% for single-user factory space.
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