Quarterly industrial property prices, rentals fall; more supply coming onstream

Prices and rentals of industrial space continued to fall in the second quarter in tandem with occupancy, according to data released on Thursday (Jul 28) by JTC.

Prices fell by 2.3 per cent in the three months ended Mar 31 compared with the preceding quarter. On a year-on-year basis, prices fell by 6.5 per cent.

Rentals declined 1.7 per cent compared with the preceding quarter, and by 6.1 per cent compared with the previous year.

JTC said that in the second half of 2016, about 1.6 million sqm of industrial space is estimated to come on stream. This is higher than the average annual supply and demand over the past three years.

“This is likely to exert further downward pressure on occupancy rates, prices and rentals, translating to reduced business costs for industrialists,” JTC said in its report.

Source : Channel NewsAsia – 28 Jul 2016

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