Prices of industrial space shrank 7.4% in Q3

But occupancy is falling as the market faces a rocky manufacturing sector.

The price of industrial spaces in Singapore fell by 7.4% YoY, whilst those of rentals also fell by 3.2% YoY.

According to JTC, the occupancy rate of the overall market fell by 0.5 ppt compared to the previous year.

About 931,000 sqm of industrial space, which includes 198,000 sqm of multiple-user factory space, is expected to come on-stream in Q4.

Cushman & Wakefield research director Christine Li commented, "The better-than-expected take-up of the factory space can be attributed to the stronger manufacturing data on the back of a brighter economic prospect."

Next year, 1.4 million sqm of industrial space, including 480,000 sqm of multiple-user factory space, is expected to come on-stream.

JTC expects prices and rentals to moderate as supply is set to increase in the coming periods.

Li said the increasing supply has been dragging down the demand for space amidst economic restructuring.

"This is in line with the fact that industrialists are consolidating their business spaces and putting their business expansion plans on hold due to the uneven recovery in the manufacturing sector," she added.