Broad-Based Demand For Ready-Built Space

Source : The Business Times, November 3, 2007

JTC says net allocation rises 29% q-o-q in Q3.

JTC’s ready-built facilities are proving particularly popular, with net allocation up by 29 per cent quarter-on-quarter to hit 75,100 sq m in the third quarter of this year.

Occupancy rates were in turn pushed up to 91 per cent from 89 per cent in the previous quarter.

JTC says: ‘Growth was broad-based, with flatted factory, stack-up factory and business park space all experiencing positive growth in net allocations.’

Commenting, Savills Singapore’s director of industrial business space Dominic Peters said demand for business park space will continue to be strong. ‘Rents could increase another 10 per cent in the next quarter to about $3.50 to $3.80 psf on average,’ he said.

Net allocation for JTC’s business park space increased 157 per cent to 1,800 sq m, with occupancy reaching 94 per cent.

Net allocation for flatted factory space was 54,000 sq m, an increase of 94 per cent over the previous quarter. The bulk of the gross allocation of flatted factory space came from the services industry, followed by general manufacturing industry and precision engineering industry.

Net allocation for stack-up factory space increased 62 per cent to 9,700 sq m.

In the same segment, net allocation in technopreneur space and standard factory space fell 88 per cent and 55 per cent respectively.

Net allocation for JTC’s prepared industrial land fell 13 per cent to 55.9 ha quarter-on-quarter.

The logistics sector share of gross allocation was up 37 per cent to 24.4 ha, with the precision engineering sector increasing 16 per cent to take 10.8 ha.

Demand for logistics space could see rents increase by 10 per cent in the next quarter, noted Mr Peters. Supply in the East is particularly tight, he added.

Net allocation for generic land remained at 22.3 ha. Local establishments formed the bulk of gross allocation of generic land at 19.1 ha (or 78 per cent). Foreign firms’ take-up of generic land increased by 11 percentage points to 5.5 ha in Q3.

Net allocation for specialised parks was 33.6 ha and accounted for 60 per cent of the total net take-up for prepared industrial land. This is a 3.4-fold increase over the 9.9 ha registered in the same period last year. Specialised parks achieved 41.6 ha in gross allocation. Of this, logistics parks contributed 43 per cent of total land take-up for specialised parks.