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Prices, rents of industrial space continue to soften in Q3: JTC
PRICES and rentals of industrial space continued to soften in the third quarter of 2015, according to JTC statistics released on Thursday.
Overall industrial prices fell 0.3 per cent over the preceding quarter, while those of multiple-user factories fell 0.4 per cent.
Overall industrial rentals fell 0.8 per cent over the preceding quarter, while those of multiple-user factories fell 1.1 per cent.
Occupancy rates likewise dipped. Overall industrial occupancies fell 0.2 per cent over the preceding quarter, while those of multiple-user factories fell 0.1 per cent.
The fall in occupancy rates was even starker at business parks, which fell 0.9 per cent, while those at warehouses bucked the trend to rise 0.9 per cent.
The softening trend looks set to continue going forward.
In the fourth quarter of 2015 and the whole of 2016, about 3.8 million square metres (sq m) of industrial space - including 810,000 sq m of multiple-user factory space - are estimated to come onto the market.
This is significantly higher than the average annual supply and demand of around 1.6 million sq m and 1.2 million sq m in the past three years, and is likely to exert further downward pressure on occupancy rates, JTC said.
At the same time, the upcoming supply would also mean ample space options for industrialists, it added.