Singapore’s industrial space prices, rents, occupancies continued to fall in tandem with occupancy rates in the first quarter of 2017.
The price and rental indices for the overall industrial property market fell by
2.2 per cent and 0.9 per cent, respectively, compared to the previous quarter. Compared to a year ago, the price and rental indices fell by 8.9 per cent and 5 per cent.
The occupancy rate also fell to 89.4 per cent in the quarter, versus 89.5 per cent in Q4 2016, and 90.1 per cent in Q1 2016.
For the next three quarters of 2017, about two million square metres of industrial space, including 421,000 sq m of multiple-user factory space, is estimated to come onstream.
“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,” JTC said.