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Singapore industrial prices, rents continue to stabilise in Q2

INDUSTRIAL prices and rentals continued to stabilise in the second quarter of 2018, government agency JTC said in its latest quarterly industrial property report on Thursday.

In Q2 2018, industrial prices were unchanged from the first quarter, while they fell by 2.1 per cent from a year ago.

Industrial rents slipped by 0.1 per cent from the previous quarter, and fell 4.1 per cent year-on-year.

Occupancy rates fell 0.3 percentage point from the previous quarter to 88.7 per cent, but were unchanged from a year ago.

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Transaction volume increased by 35 per cent from the first quarter, and 9 per cent year-on-year.

In the second half of 2018 and in 2019, about two million square metres (sq m) of industrial space, including 334,000 sq m of multiple-user factory space, is estimated to come on-stream.

This is compared with the average annual supply of around 1.7 million sq m and demand of around 1.2 million sq m in the past three years.

"As new supply starts to taper in the coming years, prices and rentals should stabilise in tandem with occupancy rates," the JTC said.