Prices and rents of industrial space remained relatively stable in the third quarter, according to JTC data out yesterday.
It noted that prices edged up 0.1 per cent from the second quarter while rents slipped 0.1 per cent.
Prices were 1.1 per cent lower in the three months to Sept 30 than in the same period last year. Rents dipped as well, falling 0.4 per cent.
Occupancy rates climbed 0.4 percentage point from the second to the third quarter to 89.1 per cent and were up 0.5 percentage point from a year earlier.
Transaction volumes were up 2 per cent from the previous quarter, but fell 4 per cent year on year.
A further 1.8 million square metres of industrial space - including 302,000 sqm for multiple-user factories - is expected to come on stream in this quarter and in 2019.
By comparison, the average annual supply of industrial space in the past three years clocked in at around 1.6 million sqm while demand hit 1.2 million sqm.
Rise in prices of industrial space from the second quarter.
"As new supply starts to taper in the coming years, prices and rentals should stabilise in tandem with occupancy rates," JTC said.