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Industrial prices, rents 'relatively stable' in Q1: JTC
INDUSTRIAL prices and rentals remained relatively stable in the first quarter of 2018, and JTC expects prices and rentals to stabilise in tandem with occupancy rates" as new supply begins to taper in the coming years.
Industrial rents dipped just 0.1 per cent compared to the fourth quarter of 2017, and fell 2 per cent year-on-year.
Industrial prices slipped by 0.1 per cent from the previous quarter, and fell 3.6 per cent from the year-ago quarter.
Occupancy rates rose marginally to 89 per cent, up 0.1 percentage point from the previous quarter, and down 0.4 percentage point from last year's first quarter.
Transaction volumes also showed signs of stabilising in Q1 2018, rising by 1.2 per cent from the last quarter and 15 per cent compared to the last year.
Another 1.4 million square metres of industrial space is estimated to come on-stream in 2018, including 236,000 sq m of multi-user factory space.
This is as compared to 1.7 million sq m of average annual supply and 1.2 million sq m of average annual demand in the past three years.