Rents for industrial properties 'to continue easing over next 3 years': JTC chief

Industrial rents are expected to continue moderating as more supply becomes available over the next three years, said the chief executive of industrial landlord JTC. -- ST FILE PHOTO: JAMIE KOH
Industrial rents are expected to continue moderating as more supply becomes available over the next three years, said the chief executive of industrial landlord JTC. -- ST FILE PHOTO: JAMIE KOH

Industrial rents are expected to continue moderating as more supply becomes available over the next three years, said the chief executive of industrial landlord JTC.

"We have seen that the price growth has slowed...but it will also depend on how well the economy is doing," said Mr Png Cheong Boon, who was speaking at a media briefing on Tuesday.

He added that even before JTC sold some of its industrial space to the private sector in 2008 and 2011, about 70 per cent of multi-user industrial space was already owned by private sector developers.

The private sector now owns about 85 per cent of multi-user industrial space - the type most commonly used by local small and medium-sized enterprises - while JTC owns about 3.5 per cent.

The divestments allowed the agency to focus on developing spaces that the private sector might not be able to provide, Mr Png added.

He said the agency is also looking into taking back land plots which are approaching their 30-year lease expiration dates.

"We will explore whether existing facilities can continue to operate there, or whether we should take these spaces back and redevelop them," he said.

Examples of these include the Tanjong Kling and Sungei Kadut areas.