Singapore ranks 7th most expensive warehouse location globally in 2H10

Tokyo and London-Heathrow also maintained their top two positions, at US$22.56 psf per annum and US$20.11 psf per annum, respectively.

According to Colliers International, Singapore rents was at US$15.71 psf per annum or $1.69 psf per month, a 17.4% growth from the US$13.38 psf per annum registered in 1H 2010.

Ms Chia Siew Chuin, Director of Research & Advisory of Colliers International, says, “The comparatively-higher growth for Singapore across the six-month period was underpinned by an expansionary demand for warehouse space amid an improved business environment, as well as the continued strengthening of the Singapore Dollar against the US Dollar.

Although Singapore’s 17.4 per cent rental growth surpassed Hong Kong’s five per cent increase during the review period – which also translates to a dilution of the Republic’s cost competiveness against Hong Kong to some extent, the Lion City continues to maintain her competitiveness against her closest rival in the region, with prime warehouse rents in Singapore still about eight per cent more affordable than that of Hong Kong’s.”

Bulk Warehouse Space (industrial space of 100,000 sq ft or more, with up to 10 per cent office space) Singapore climbed from the 10th position in 1H 2010 to the 8th position in 2H 2010, commanding a bulk warehouse rent of US$12.08 per sq ft per annum (S$1.30 per sq ft per month in local currency terms).

This is a 10 per cent growth from 1H 2010’s figure of US$10.98 per sq ft per annum, which was similarly buoyed by an expanding demand on the back of optimistic business sentiment, as well as a stronger Singapore Dollar against the Greenback.

The top three positions were bagged by Tokyo (US$23.25 per sq ft per annum), London-Heathrow (US$18.56 per sq ft per annum) and Zurich (US$15.81 per sq ft per annum), respectively.