Analysts believe rents will be strengthened by the expansion in the manufacturing sector.
This chart from JTC shows that industrial rents are largely stable as the rental index for overall industrial space only dipped by 0.1% QoQ in Q2 2018, which is lower compared to a decrease of 1.4% from a year ago. The chart also revealed that multiple-user factory space inched up 0.2%
“Overall industrial rents are largely stable, as the manufacturing sector continues to expand in June in accordance to the Purchasing Managers’ Index,” Knight Frank Singapore senior director and head of research Lee Nai Jia said.
The index’ stabilisation was pushed mainly by the QoQ of the North region (3.6%), North-east region (0.6%), and Business 2 zoning (0.6%). These gains were offset by minimal rental decreases in the East region (-0.9%) Central region (-0.5%), and West region (-0.5%).
“We expect industrial property prices and rents to continue to stabilise for the rest of the year,” Colliers International head of research for Singapore Tricia Song said. “There could potentially be modest rental gains beyond 2018 when new supply starts to taper.”
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