Prices of 60-year leasehold industrial units edged up 1.3% to S$457

Elevated prices are here to stay, says analyst.

According to Savills, sixty-year and 30-year leasehold prices were up by 1.3% and 1.2% respectively to S$457 and S$356 per sq ft.

"Notwithstanding declining yields and increasing supply, an era of elevated prices and rents has come upon us and is here to stay," said Alan Cheong, Savills Research.

Here's more:

Prices of strata-industrial properties continued to register modest  increases across the board. However, sales were slower in the quarter. A total of 704 caveats for strata factories and warehouses were lodged in Q1/2013, down 45% from the preceding quarter and 38% from Q1/2012’s 1,141caveats.

Observed from the upper-storey factory and warehouse units tracked by Savills, freehold prices posted the biggest rise of 3.1% in Q1 to S$669 per sq ft, led by those in the low S$500 per sq ft range.

Meanwhile, 60-year and 30-year leasehold prices were up by 1.3% and 1.2% respectively to S$457 and S$356 per sq ft.