Rents for high-tech industrial space up 3.1% in Q1

Rents for high-tech industrial properties in Singapore grew at a faster rate in the first quarter, DTZ Research said yesterday.

The average rent for high-tech properties, which include business parks, rose 3.1 per cent quarter-on-quarter to S$3.30 per sq ft per month in the first three months of the year, following a 1.6-per-cent increase in the previous quarter.

Rents for conventional industrial space rose as well, with average monthly gross rent for upper-storey industrial space rising 3 per cent on quarter to S$1.70 per sq ft per month, after an increase of 3.1 per cent in the previous quarter.

However, the average rent was still 17.1 per cent below the S$2.05 per sq ft achieved during the peak in 2008.

Head of DTZ South-east Asia Research, Ms Chua Chor Hoon, said: “Rents for hi-tech industrial properties are found to be highly correlated to office rents, which have moved up by 7.5 per cent to 10 per cent outside the CBD in Q1 this year.”

DTZ adds that industrial rents are likely to continue to rise, because the annual average potential supply of 7.5 million sq ft between this year and 2013 is significantly lower than the historical 10-year average demand of 9.3 million sq ft.Source : Today – 15 Apr 2011