With rents up in four clusters, overall island-wide rents for conventional industrial space in Singapore climbed 0.5 percent quarter-on-quarter to S$1.98 psf per month during the third quarter of 2017, reported Singapore Business Review, citing Knight Frank.
Knight Frank’s basket of industrial properties showed that the clusters in Alexandra, Bukit Merah, Pasir Panjang and Jalan Kilang posted the highest increase in rent at 1.8 percent quarter-on-quarter to S$2.83 psf per month.
The Clementi – Toh Tuck – Bukit Batok cluster, on the other hand, registered the biggest drop in rents in Q3 at 1.4 percent quarter-on-quarter to S$1.40 psf per month from S$1.42 psf per month. The consultancy attributed the decline to lower rental transactions from factory buildings such as Enterprise Hub.
It also revealed that business park rents remained flat for two quarters at S$4.24 psf per month.
Meanwhile, island-wide rental transactions for single-user factory units increased to 108 in Q3 from 85 in Q2, with the North region reporting the biggest increase with seven more transactions from the previous quarter.
Multiple-user factory unit rental transactions dropped to 1,892 in Q3 from a high of 2,004 previously. The West region recorded the biggest decline in transactions from 336 to 276.
Rental transactions for warehouse units rose to 358 from 312 in Q2, signalling a growing interest for warehouse spaces. The East region saw the biggest increase in transactions from 38 to 54.
This article was edited by Romesh.