JTC Ready-Built Facilities’ Take-Up Hits Record

Source : The Business Times, February 1, 2008

AS A result of strong economic growth and a buoyant industrial space market in 2007, Singapore’s biggest industrial landlord JTC yesterday said that net take-up for its ready-built facilities reached a new record high of 214,700 sq m in 2007. This surpasses the previous record of 179,600 sq m set in 2005.

Similarly, a new high was also set for its prepared industrial land, which saw a net take-up of 341 ha in 2007.

The growth in the ready-built facilities segment came from increases in net allocation for flatted, stack-up and standard factory space, JTC said.

The overall occupancy for ready-built facilities rose to 92.7 per cent in 2007, from 87.8 per cent in 2006.

Gross allocation of ready-built facilities rose by 42 per cent to 399,900 sq m in 2007, from 281,000 sq m in 2006. However, the termination level also increased by 14 per cent year-on-year to 185,200 sq m in 2007 - giving a net allocation of 214,700 sq m.

For prepared industrial land, the robust net allocation was mainly due to ‘exceptionally strong’ gross allocation of 451 ha, an increase of 42 per cent over 2006, JTC said.

As a result, the occupancy rate for prepared industrial land reached 89 per cent last year. The bulk of the increase in net allocation came from specialised parks (which accounted for 250 ha - or 73 per cent - of the total net allocation of 342 ha). There was significant growth in net allocations for Jurong Island (156 ha) and Wafer Fab Park (42 ha).

JTC also said that the chemical sector made up 50 per cent of the total gross allocation of prepared industrial land for 2007. Manufacturing related and supporting sectors (such as logistics and services) accounted for 13 per cent and 12 per cent respectively of total gross allocation.

Market observers have said that rents and occupancy levels improved across all industrial space last year as many international companies have recently turned their sights on Singapore on the back of Asia’s growth.

Rents and occupancy rates for all industrial space are expected to continue growing this year, they said.