Property consultant Colliers International says the industrial property market here has stabilised, with rents having bottomed out.
In its latest bi-annual survey on industrial real estate costs across Asia Pacific, the firm says the stabilisation was on the back of a turnaround in the US and Euro-zone.
In particular, export-oriented cities, like those in Singapore and China, posted strong double-digit year-on-year gains in manufacturing output in the first quarter this year.
This, Colliers says, contributed to a healthy demand for industrial properties across the region.
The firm’s director of research and advisory, Tay Huey Ying, notes that the average monthly gross rents of single-user factories in central Singapore has edged up.
From October to March, the rent was up by an average of 3.8 per cent to about S$1.35 per square foot.
Colliers also says institutional investors are returning to the industrial investment market here.
For example, Singapore saw the sale of six logistics facilities worth some S$713.2 million to Cache Logistics Trust for its listing in April 2010.
Going forward, Ms Tay says Singapore’s exceptionally-strong growth seen so far this year for the manufacturing sector, has raised confidence for the industrial property market.
As a result, rents, land and capital values of industrial properties are expected to see a steady increase in the next 12 months.
Source : Channel NewsAsia – 13 May 2010