Rents in industrial property market climb 2.1% in Q3

Prices also increased by 2%, the JTC reported. 

Rents in the industrial property market grew by 2.1%, whilst prices increased by 2% in the third quarter of the year, JTC reported.  

The overall occupancy rate, meanwhile, stood at 89.7%, representing a drop of 0.3 points quarter-on-quarter and 0.5 points year-on-year. 

Read more: Industrial occupancy falls to 89.8% in Q1 2022: JTC 

JTC attributed the occupancy rate drop to the demand for the single-user factory segment which fell by 0.4% QoQ. 

On top of this, the occupancy rate in the multiple-user factory and warehouses segments also slipped by 0.2 and 0.1 points QoQ, respectively. This was driven by the increase in new supply, outstripping new demand. 

In contrast, the occupancy rate in the business park segment inched up by 0.1 points QoQ.

As of September 2022, JTC noted that around 0.6 million square metres of new industrial space will be completed by the last quarter. 

Of this, multiple-user factory accounted for about 40%, whilst single-user factory and warehouses will make up 35% and 25%, respectively. 

“Barring any sharp slowdown in the global economy, demand for industrial space in 2022 and 2023 is expected to be healthy and occupancy relatively stable,” JTC reported.