The industrial sector has continued to see upswing in transacted prices and according to some analysts, it will 'remain at elevated levels' for the rest of 2012.
As some older industrial estates are undergoing redevelopment, the existing tenants had to move out to other location. Some high-tech and computer related companies are also actively looking out for production space thus creating a continuous demand for industrial properties.
Due to the low interest rates and residential properties’ cooling measures, investors are also turning to the strata-titled industrial property.
Industrial rents were up 2.8% in Q2 2012 on top of the 1.8% gain in Q1 2012. Prices and rents are expected to continue to increase for the rest of 2012 though at a more manageable pace compared to the current quarterly price gains of about 7% to 8%.
Some industrial projects like M38 at Jalan Pemimpin crossed the $1,000 psf benchmark while some units at freehold project AZ@Paya Lebar are transacted at above $1,000 psf.
The authority has since attempted to rein in prices by offering industrial sites under the government land sales programme to be sold with lease term of 30 years and releasing smaller sites for industrialists who want to control cost for them to build their own facilities rather than rent.
28 Jul 2012