Industrial rents in Singapore fell 2.7 per cent quarter on quarter (q-o-q) and 5.1 per cent year on year (y-o-y) in the first quarter of 2016, JTC Corporation’s latest statistics released on Thursday show. Industrial property prices have also fallen 2.5 per cent q-o-q and 4.8 per cent y-o-y in Q1 2016. Vacancy rates island-wide also rose by 0.5 percentage point to 9.9 per cent. However, despite higher vacancy rates, industry experts are optimistic that occupancy rates will suddenly drop down to below 85 per cent. John Kong, council member of the Singapore Manufacturing Federation and managing director of steelmaker M Metal opines that the fall in rental and wide array of leasing options availableare good for new industrialists looking to set up a new place. Existing industrialists, however, are unlikely to relocate or expand, given uncertainties in the business environment, but the cheaper rents will in turn help them control their costs amid the uncertain economic climate.
