Industrial rents, prices flat in fourth quarter: JTC

Rental rates and prices of industrial space remained unchanged in the fourth quarter of last year over the preceding three months.

Prices were also unchanged from the same period last year while rents eased 0.3 per cent.

Occupancy rates in the overall industrial property market rose 0.2 percentage point to 89.3 per cent in the final three months of 2018 over the previous quarter, and gained 0.4 percentage point year on year.

Industrialists looking to own production space have plenty of choice with about 60 units totalling 22,000 sq m in uncompleted strata-titled developments on sale as of Dec 31, according to industrial land agency JTC Corp yesterday.

JTC said that based on the number of caveats lodged for industrial properties, the transaction volume in the fourth quarter was down 5 per cent from the previous quarter, but up 34 per cent year on year.

This year, 1.5 million sq m of industrial space, including 303,000 sq m in multiple-user factories, is estimated to come on stream - about 3 per cent of the current industrial stock.

By comparison, the average annual increase in industrial space over the past three years was around 1.4 million sq m, with demand coming in at around 1.1 million sq m.

"With more supply coming on stream, it will continue to support the expansion plans of industrialists," JTC said.

A version of this article appeared in the print edition of The Straits Times on January 25, 2019, with the headline 'Industrial rents, prices flat in fourth quarter: JTC'. Print Edition | Subscribe