Industrial property prices rise 6% in 2Q11

The average monthly rents of factories and warehouses increased to S$1.7 to S$2.1 per sq ft.

Prices and rents
Underpinned by strong buying activities, the Urban Redevelopment Authority Price index for all industrial properties rose 6% in Q2 after an 8% gain in Q1, according to Savills’ latest Industrial Briefings Q2/2011. Recent launch prices reflect upbeat market expectations. For example, Oxley Group sold nearly 60% of the launched units at Oxley Bizhub over a weekend soft launch at an average price of S$677 per sq ft, setting a new benchmark in the area,.

The URA rental index rose 6% in Q2, the same rate as in Q1. The average monthly rents of prime flatted factories and warehouses tracked by Savills rose to S$1.7 to S$2.1 per sq ft in Q2, while high-tech industrial rents strengthened to S$3.6 to S$4.0 per sq ft.

Future supply
At the end of Q2/2011, an estimated 39.3 million sq ft of factory space and 7.0 million sq ft of warehouse space is expected to be completed between 2011 and 2015.