reporter2
02-05-14, 21:34
http://www.straitstimes.com/archive/friday/premium/money/story/price-rental-data-jtc-industrial-sites-hand-20140425
Price, rental data for JTC industrial sites at hand
Landlord posts data online to boost transparency as cost of space rises
Published on Apr 25, 2014 1:18 AM
By Chia Yan Min
INDUSTRIAL firms looking to rent or buy affordable space will have more market information at their fingertips under changes unveiled by landlord JTC.
The addition of the new data to JTC's website is a bid to boost transparency and help firms make more informed choices, JTC said.
The move follows debate over rising costs of industrial space - though the latest data shows both prices and rental rises moderated in the first three months of the year as more supply came in.
Tweaking its website, JTC has now posted data on median rentals and prices for various industrial sites - down to street level.
The data goes back three years.
JTC has also started breaking down quarterly statistics on price and rental trends by region, to allow for cost comparisons across different parts of the island.
Previously, only changes in the overall industrial price and rental indices were published.
''We wanted to provide more granular data... so industrialists can make comparisons and look for cheaper alternatives,'' said Mr Leong Hong Yew, the director of JTC's market planning division.
The new data shows some industrial space is more affordable.
The median rent for B1 multiple- user factory space - intended for light industrial use - in the western region was $25.88 per sq m in the first quarter, down 3.5 per cent over the same period last year, data out yesterday showed.
But median rent for this type of space in the east was $15.79 per sq m, up 10.3 per cent over last year.
Mr Nicholas Mak, head of research at SLP International Property Consultants, said the more detailed data is likely to be a boon to smaller industrial investors who find it hard to get market data. However, ''users of the data should also exercise caution'', as median prices often do not capture the variety of industrial properties and tenures on the market.
Yesterday's statistics also showed that the cost of industrial space continued to rise at a slower pace in the first quarter.
Overall industrial rents went up 4.9 per cent in the quarter over the same period a year earlier, and rose just 0.4 per cent over the preceding quarter.
Rentals of multiple-user factory space - the type most commonly used by small and mediumsized enterprises - were up 4.5 per cent in the quarter over last year, and rose 1.3 per cent over the preceding quarter.
Industrial rents rose 5 per cent last year, easing from jumps of 10.1 per cent in 2012 and 15.5 per cent in 2011.
The moderation in the cost of industrial space is expected to continue as more supply becomes available over the next three years, said Mr Leong. An average of 2.1 million sq m of industrial space is expected to become available every year for the next three years. This is about 4 per cent to 5 per cent of the existing stock of industrial space, and ''significantly higher'' than the average annual demand in the last three years.
Savills Singapore research head Alan Cheong said sales activity in the industrial property market has dipped owing to restructuring challenges faced by factories here.
The rental market is expected to become more active, as industrialists seek production space to capitalise on the improving global economic conditions.
However, burgeoning supply and rising costs are expected to keep a cap on rents, said Mr Cheong. ''Despite this, factories with large useable space for operations would command a premium, as these units have become less common in the market today.''
[email protected]
Price, rental data for JTC industrial sites at hand
Landlord posts data online to boost transparency as cost of space rises
Published on Apr 25, 2014 1:18 AM
By Chia Yan Min
INDUSTRIAL firms looking to rent or buy affordable space will have more market information at their fingertips under changes unveiled by landlord JTC.
The addition of the new data to JTC's website is a bid to boost transparency and help firms make more informed choices, JTC said.
The move follows debate over rising costs of industrial space - though the latest data shows both prices and rental rises moderated in the first three months of the year as more supply came in.
Tweaking its website, JTC has now posted data on median rentals and prices for various industrial sites - down to street level.
The data goes back three years.
JTC has also started breaking down quarterly statistics on price and rental trends by region, to allow for cost comparisons across different parts of the island.
Previously, only changes in the overall industrial price and rental indices were published.
''We wanted to provide more granular data... so industrialists can make comparisons and look for cheaper alternatives,'' said Mr Leong Hong Yew, the director of JTC's market planning division.
The new data shows some industrial space is more affordable.
The median rent for B1 multiple- user factory space - intended for light industrial use - in the western region was $25.88 per sq m in the first quarter, down 3.5 per cent over the same period last year, data out yesterday showed.
But median rent for this type of space in the east was $15.79 per sq m, up 10.3 per cent over last year.
Mr Nicholas Mak, head of research at SLP International Property Consultants, said the more detailed data is likely to be a boon to smaller industrial investors who find it hard to get market data. However, ''users of the data should also exercise caution'', as median prices often do not capture the variety of industrial properties and tenures on the market.
Yesterday's statistics also showed that the cost of industrial space continued to rise at a slower pace in the first quarter.
Overall industrial rents went up 4.9 per cent in the quarter over the same period a year earlier, and rose just 0.4 per cent over the preceding quarter.
Rentals of multiple-user factory space - the type most commonly used by small and mediumsized enterprises - were up 4.5 per cent in the quarter over last year, and rose 1.3 per cent over the preceding quarter.
Industrial rents rose 5 per cent last year, easing from jumps of 10.1 per cent in 2012 and 15.5 per cent in 2011.
The moderation in the cost of industrial space is expected to continue as more supply becomes available over the next three years, said Mr Leong. An average of 2.1 million sq m of industrial space is expected to become available every year for the next three years. This is about 4 per cent to 5 per cent of the existing stock of industrial space, and ''significantly higher'' than the average annual demand in the last three years.
Savills Singapore research head Alan Cheong said sales activity in the industrial property market has dipped owing to restructuring challenges faced by factories here.
The rental market is expected to become more active, as industrialists seek production space to capitalise on the improving global economic conditions.
However, burgeoning supply and rising costs are expected to keep a cap on rents, said Mr Cheong. ''Despite this, factories with large useable space for operations would command a premium, as these units have become less common in the market today.''
[email protected]