SINGAPORE - Industrial landlord JTC Corp reported on Thursday that industrial prices and rents have cooled significantly while occupancy rates have moderated as the Government stepped up supply of land and space.
Its market report for the first quarter of the year found that prices for all types of industrial space only grew 0.5 per cent, compared with a year ago.
Rents of industrial space slid 2 per cent for the first three months of the year, compared with the same period a year ago, while occupancy rates fell 0.9 per cent.
This follows the increased supply of industrial land and space by the Government in recent years, said JTC.
The state industrial landlord reported that for the rest of the year, an estimated 2.1 million sq m worth of industrial space, including 420,000 sq m of multiple-user factory space, is expected to be available.
An additional 2.5 million sq m of industrial space will come on line next year.
JTC said: "This is significantly higher than the average annual supply and demand of around 1.5 million sq m and 1 million sq m in the past three years, and is likely to exert further downward pressures on occupancy rates."
The report also noted that there are about 1,700 units in uncompleted multiple-user factories, making up more than 500,000 sq m, that are still available for sale as at the end of February.
As more than 50 of these unsold units are larger than 1,000 sq m, these are ideal for those looking to buy industrial space.
JTC said: "The Government will continue to monitor the industrial property market closely to ensure that the diverse needs of industrialists are met. Appropriate measures will also be introduced where necessary to promote a stable and sustainable industrial property market."