Prices of industrial space down 0.2% q-on-q in Q4 2019, rents flat: JTC

Nisha Ramchandani

Published Thu, Jan 23, 2020 · 05:00 AM

RENTS and prices of industrial space in Singapore remained relatively stable in the fourth quarter of last year, though prices were marginally lower by 0.2 per cent quarter on quarter, according to the latest data from industrial land and infrastructure agency JTC Corp.

The rental index was flat, while the occupancy rate for industrial space edged down 0.1 percentage point to 89.2 per cent.

Compared with a year ago, the price index fell 0.3 per cent while the rental index inched up 0.1 per cent. The occupancy rate of the overall industrial property market was also down 0.1 percentage point from a year ago.

For industrialists looking to own production spaces, there were about 170 units in uncompleted developments available for sale at the end of Q4 2019. These units totalled about 120,000 square metres (sq m).

In 2020, around 2.2 million sq m of industrial space is expected to come onstream, while a further 2.7 million sq m is expected to be completed between 2021 and 2023. This works out to an average annual supply of 1.2 million sq m in the next four years, compared to an average annual supply of 1.1 million sq m of industrial space in the past three years.

JTC said: "The higher supply quantum is to cater to replacement space for lessees affected by JTC's industrial redevelopment programme to rejuvenate older industrial estates to support future economic growth."

In Q4 2019, the tender for two industrial government land sales sites, both slated for single-user developments, at Tampines North Drive 5 and Tuas West Avenue closed; the Tampines North Drive 5 site received two bids but was not awarded as the bids were below reserve price. Meanwhile, the site at Tuas West Avenue received one bid, JTC said, adding that the assessment of award of the site is still in progress.

JTC also said that based on the number of caveats lodged for industrial properties, transaction volumes in Q4 2019 fell by 12 per cent quarter on quarter and 6 per cent from a year ago.