Prices, rentals of industrial space continue to sink in Q1

As the market anticipates a massive flood of supply.

Prices and rentals of industrial space continued to tumble in tandem with occupancy rates, according to latest data released by JTC.

In 1Q16, the price and rental indices for the overall industrial property market fell by 2.5% and 2.7% compared to the preceding quarter. Meanwhile, occupancy rates dipped 0.5%.

On a YoY basis, the price and rental indices dropped by about 5%, in tandem with a 0.6% pullback in occupancy rates.

Moreover, about 2.4m sqm of industrial space is expected to flood the market in the next three quarters of 2016. This includes 490,000 sqm of multiple-user factory space.

In 2017, an additional 1.8m sqm of industrial space which includes 440,000 sqm of multiple-user factory space is slated for completion.

JTC reports that this onslaught of supply would likely exert further downward pressure on occupancy rates.