JTC Corporation reported a 38.5 per cent drop in net allocation of prepared industrial land (PIL) for the third-quarter 2008, on a year-on-year basis.
Third quarter figures stood at 34.5 hectares, similar to the previous quarter but lower than the 56.2 hectares seen in the same period last year.
Property consultancy Jones Lang LaSalle told Channel NewsAsia the contraction reflects the weakening of manufacturing demand from overseas as a result of the slowdown in the global economy.
Looking ahead, it expects demand for industrial facilities to continue to moderate downwards.
JTC said the gross allocation of PIL also moderated from 64.1 hectares in the second quarter to 56.7 hectares in the third quarter.
But it noted that termination has dropped from 30.1 hectares to 22.2 hectares.
During the period, the company also completed the divestment of a portfolio of ready-built facilities (RBF) to Mapletree on 1 July 2008.
JTC said that even though the net allocation for its remaining RBF portfolio fell into negative territory of 500 sqm, the RBF occupancy level remained very healthy at 95.6 per cent.
Source : Channel NewsAsia – 3 Nov 2008