PRICES and rentals of industrial space continued to fall in tandem with occupancy rates, JTC's latest statistics released on Thursday show.
In Q1 this year, the price and rental indices for the overall industrial property market fell by 2.5 per cent and 2.7 per cent compared with the previous quarter, together with a 0.5 per cent fall in occupancy rates.
On a year-on-year basis, prices and rentals fell by a more pronounced 4.8 per cent and 5.1 per cent, in tandem with a 0.6 per cent fall in occupancy rates.
Prices and rentals are expected to fall further, with a huge supply coming onstream.
In 2016 and 2017, about 2.4 million square metres (sq m) and 1.8 million sq m of industrial space respectively is estimated to come into the market.
This is inclusive of 490,000 sq m and 440,000 sq m of multiple-user factory space, expected to be completed in 2016 and 2017 respectively.
This far exceeds the average annual supply and demand of industrial space of around 1.8 million sq m and 1.2 million sq m in the past three years, and should bring occupancy rates lower going forward, JTC said.