Singapore’s industrial property market showed signs of a pick-up in the second quarter.
According to Colliers International, average monthly gross rents for prime factory and warehouse spaces surged between 6 and 7 per cent on-quarter. This was the fastest quarterly growth in three years.
But rents for all segments of prime factory and warehouse space are still below peak rates in the second half of 2008.
Monthly gross rents for prime ground floor factory space are now 8.9 per cent below the peak in the third quarter of 2008 – they command an average of S$2.25 per sq feet.
Similarly, prime ground floor warehouse space commanded average monthly gross rents of S$2.34 per sq feet. This is 4.5 per cent below its peak of S$2.45 per sq feet in the fourth quarter of 2008.
Meanwhile, the average monthly gross rents of prime upper factory and warehouse spaces in the second quarter of this year were S$1.96 per sq feet and S$1.90 per sq feet respectively.
This exceeded 2009′s fourth quarter peak of S$1.81 per sq feet and S$1.76 per sq feet correspondingly by 8.3 per cent and 8 per cent.
Capital values of industrial properties also grew in the second quarter.
Average capital values for prime freehold factories on the ground floor climbed 3.2 per cent on to S$574 per sq feet. Those on the upper floors rose 5.3 per cent to S$500 per sq feet.
Average capital values for prime freehold warehouses on the ground floor and upper floors rose by 7.3 per cent and 7.8 per cent on quarter, to end the quarter at S$571 per sq feet and S$482 per sq feet respectively.
Chia Siew Chuin, Director of Research & Advisory of Colliers International, said rents and capital values of industrial properties are expected to grow more moderately, in the range of 10 per cent in second half of this year.
Source : Channel NewsAsia – 6 Jul 2011
