Industrial space oversupply seen worsening

[SINGAPORE] A mismatch between demand and supply of industrial space, especially in the multi-user segment, could exacerbate already rising vacancies due to imminent oversupply.

Such mismatch, according to Colliers International research and advisory director Chia Siew Chuin, stems mainly from regulatory restrictions on the use of industrial space.

"It is time that the government fine-tunes these rules," she said. The current Urban Redevelopment Authority (URA) rules require users of industrial space to devote at least 60 per cent of the total floor area to core industrial activities and remainder for ancillary and secondary uses.