SINGAPORE - Prices and rentals of industrial space continued to fall in tandem with occupancy rates in the first quarter of this year, figures from JTC showed on Thursday (April 28).
Price for the overall industrial property market declined by 2.5 per cent in the January-March period from the previous three months - falling for the fourth straight quarter.
Rents have also weakened for the fourth quarter in a row, falling 2.7 per cent compared to the final quarter of 2015.
Occupancy rate declined by 0.5 per cent on-quarter, with vacancy rate for all industrial space hitting 9.9 per cent.
On a year-on-year basis, the price and rental indices fell by about 5 per cent from the first quarter of 2015, while occupancy rates weakened by 0.6 per cent.
The industrial property market is facing a supply glut - in 2016 and 2017, about 2.4 million square metres and 1.8 million sqm of industrial space will come on-stream respectively, JTC estimates. In comparison, the average annual supply and demand of industrial spaces was around 1.8 million sqm and 1.2 million sqm in the past 3 years.
For industrialists looking to own production space, there were around 2,000 units, totalling 530,000 sqm, in uncompleted strata-titled developments still available for sale as at March 31. They account for around 5 per cent of existing multiple-user factory space.