Industrial property prices, rents continued to stabilise in Q2: JTC

Terrace food factories at Tuas View. Industrial rents dipped by 0.1 per cent from the previous quarter, and fell 4.1 per cent year-on-year.
Terrace food factories at Tuas View. Industrial rents dipped by 0.1 per cent from the previous quarter, and fell 4.1 per cent year-on-year.PHOTO: JTC

SINGAPORE - Industrial property prices and rentals continued to stabilise in the second quarter of 2018, government agency JTC said in its latest quarterly market report on Thursday (July 26).

In Q2 2018, industrial prices were unchanged from the first quarter, while they fell by 2.1 per cent from a year ago.

Industrial rents dipped by 0.1 per cent from the previous quarter, and fell 4.1 per cent year-on-year.

Occupancy rates fell 0.3 percentage points from the previous quarter to 88.7 per cent, but were unchanged from a year ago.

Transaction volume increased by 35 per cent from the first quarter, and 9 per cent year-on-year.

In the second half of 2018 and in 2019, about 2 million sqm of industrial space, including 334,000 sqm of multiple-user factory space, is estimated to come on-stream.

This is compared with the average annual supply and demand of around 1.7 million sqm and 1.2 million sqm respectively in the past three years.

"As new supply starts to taper in the coming years, prices and rentals should stabilise in tandem with occupancy rates,'' JTC said.