Rentals, sale prices of industrial space rise at moderate pace

SINGAPORE — Rentals and sale prices of industrial space continued to climb at a moderate pace in the first quarter of the year, amid a marginal drop in occupancy rates during the same period, a quarterly report released by JTC yesterday showed.

The report showed that rentals rose 0.4 per cent on-quarter during the January-to-March period, higher than the 0.2 per cent growth in the previous three months. On a year-on-year basis, rentals climbed by 4.9 per cent, slower than the average annual increase of 10.6 per cent over the past four years.

In terms of sale prices, the data showed a 3.8 per cent on-quarter gain in the first three months, following a 3.3 per cent decline in the previous quarter. However, on an annual basis, the 2.5 per cent increase in sale prices was still significantly lower than the average yearly growth of 20.2 per cent over the past four years.

The moderation came amid a drop in occupancy rates, which fell by 0.3 percentage points on-quarter and 1.4 percentage points on-year to 91.6 per cent in the first quarter.

“This decline in occupancy rates follows an increase in the supply of industrial land and space by the Government in recent years,” JTC said in the report. LEE YEN NEE