Prices and rentals of industrial space remained relatively stable in the third quarter of this year as industrial prices edged up 0.1 per cent from the previous quarter, while industrial rents slipped 0.1 per cent, JTC’s latest report showed.
Compared to a year ago, prices of industrial space softened 1.1 per cent, while rents dipped 0.4 per cent.
Meanwhile, occupancy rates climbed 0.4 percentage point quarter-on-quarter to 89.1 per cent, and were up 0.5 percentage point from a year ago.
Transaction volumes were up 2 per cent from the previous quarter, but fell 4 per cent year on year.
In the fourth quarter of this year and in 2019, another 1.8 million square metres of industrial space – including 302,000 sq m of multiple-user factory space, is expected to come onstream. In comparison, the average annual supply and demand of industrial space in the past three years clocked around 1.6 million and 1.2 million sq m respectively.
“As new supply starts to taper in the coming years, prices and rentals should stabilise in tandem with occupancy rates,” JTC said.