Average rents for hi-tech properties up 3.1% in Q1

Rents for hi-tech industrial properties in Singapore grew at a faster rate in the first quarter.

According to DTZ Research, the average rent for hi-tech properties, which include business parks, rose 3.1 per cent quarter-on-quarter to S$3.30 per square foot per month in the first quarter.

It had increased 1.6 per cent in the previous quarter.

Rents for conventional industrial space also continued on its growth momentum.

DTZ said the average monthly gross rent for upper-storey industrial space grew 3 per cent on quarter to S$1.70 per square foot per month.

This follows an increase of 3.1 per cent in the previous quarter.

The average rent is 17.1 per cent below the S$2.05 per square foot achieved during the peak in 2008.

Head of DTZ Southeast Asia Research, Chua Chor Hoon, said the increase in rents for hi-tech industrial properties seems correlated to office rents which have moved up 7.5 per cent to 10 per cent outside the CBD.

DTZ added that industrial rents are anticipated to continue to increase.

That is because the annual average potential supply of 7.5 million square feet between 2011 and 2013 is significantly lower than the historical 10-year average demand of 9.3 million square feet.

Source : Channel NewsAsia – 7 Apr 2011

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