Oct 29, 2021
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Industrial property prices went up 0.1% quarter-on-quarter and 3.9% year-on-year, while rents grew by 0.7% quarter-on-quarter and 1.9% year-on-year in Q3 2021.

In line with the economy’s broad recovery, industrial property prices in Singapore continued to increase in the third quarter of 2021.

In Q3 2021, prices for industrial space increased 0.1% quarter-on-quarter and 3.9% year-on-year, revealed JTC on Thursday (28 October).

This comes as caveats lodged for industrial properties showed that transaction volume climbed 28% from the previous year.

Among the regions, the West Region and Central Region did well, with prices climbing 0.2% and 0.4% quarter-on-quarter, respectively, noted Shirley Wong, Senior Associate Director of Research for Singapore at Colliers International.

The North Region and Other Regions, on the other hand, saw prices decline 0.1% and 0.3% quarter-on-quarter, respectively.

Rents for industrial space likewise increased by 0.7% quarter-on-quarter and 1.9% year-on-year in Q3 2021.

CBRE’s Research Head for Southeast Asia, Tricia Song, said warehouses registered the highest rental growth of 1.7% quarter-on-quarter since the previous peak in Q4 2013.

Rents for single-user factories grew 0.6% quarter-on-quarter, while business park rents also inched up by 0.3% quarter-on-quarter.

JTC noted that while the occupancy rate held flat in Q3 2021 at 90.1%, it was 0.5 percentage points higher compared to Q3 2020.

The occupancy rate for multiple-user factories rose 0.1 percentage points from the previous quarter, while that for warehouses increased 0.4 percentage points.

Business parks and single-user factories, on the other hand, saw occupancy rates dip by 0.5 and 0.2 percentage points, respectively, as the hikes in supply outpaced new demand.

With delays in completion persisting, total available stock expanded by 228,000 sq m during the period under review, moderating from the 374,000 sq m quarterly increase registered in Q2 2021.

“As at end September 2021, around 0.9 million sq m of new industrial space is expected to be completed in the last quarter of 2021,” shared JTC.

Of this, about 45% are single-user factory space, 39% are multiple-user factory space, while the other 16% are warehouse and business park space.

JTC expects the demand for industrial space to increase as the economy continues its recovery.

However, any potential hike in occupancy may be “tempered by new completions, although this increase in supply will depend on the delays in expected completions”. 

“Prices and rentals of industrial spaces are likely to remain stable, with positive upsides in the near future if the economy recovers strongly,” added JTC.

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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg

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