Prices and rentals of Singapore industrial spaces continue to sink in second quarter of 2016 along with occupancy rates, while industrial space vacancy rates inch upward, according to JTC’s latest statistics issued last 28 July.
Overall, Prices for Singapore industrial space dropped by 2.3% while rents decline by 1.7%. Meanwhile, overall occupancy rate for industrial property segment also dropped by 0.7% points on quarterly basis to 89.4% in second quarter of 2016.
And for yearly basis, overall occupancy rate for industrial space dipped by 1.6% points, while prices and rents of industrial space fell by 6.5% and 6.1%, respectively.
It was the fifth consecutive quarter where price and rental indices for industrial space declined on both quarterly and yearly basis.
JTC group attributed the slumps of prices and rents to the growth of industrial land and space supply in the last few years.
Meanwhile, property consultancy noticed that the business park segment had resisted the dropping trend in second quarter of 2016, with rents climbing by 0.5% on quarterly basis.
JLL Head of Research for Singapore, Tay Huey Ying ascribed the growth to higher rents required by newer projects.