Weakening industrial space prices and rents continue stumble in Q3

Overall industrial space prices declined by 0.3%.

Both prices and rentals of industrial spaces continued to gradually soften, as overall industrial space and multiple-user factory space prices fell by 0.8%, respectively.

According to JTC, the price indices of multiple-user factory space declined in most planning regions, except for the North region which inched up by 0.5%.

“The movement of price indices of multiple-user factory space based on land-use zoning was mixed, with the price index of Business 1 multiple-user factory space falling by 0.8% and the price index of Business 2 multiple-user factory space rising by 0.8% on a quarter-on-quarter basis,” JTC said.

Meanwhile, the prices of multiple-user factory spaces with tenure of 30 years and below and with 31-60 years of tenure remaining fell by 3.7% and 0.5% respectively.

“The price index of multiple-user factory space with tenure of more than 60 years remaining rose by 1.0% in 3Q 2015,” JTC added.

As for industrial space rentals, the indices of the overall industrial space, multiple-user factory space, business park space and warehouse space fell by 0.6% to 1.3%.

“The rental index for single-user factory space3 rose by 0.6% compared to the previous quarter. Compared to a year ago, the rental indices fell by 0.2% to 1.9% across all market segments,” JTC said.

“In 3Q 2015, rental movements of multiple-user factory space saw a decline in most planning regions (1.5% to 6.4%) except for Central region which rose slightly by 0.4% on a quarter-on-quarter basis. Compared to 2Q 2015, rental movements of multiple-user factory space based on land-use zoning also saw a decline. The rental indices of Business 1 (B1) multiple-user factory space and Business 2 (B2) multiple-user factory space fell by 0.8% and 1.9% respectively,” they added.