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Daily Archives: 1 Oct 2009

Industrial property rents fall for 4th straight quarter

Posted on 1 Oct 2009 | Comments Off

But Q3 drop is smaller than Q2’s; gap with office rentals narrows

PRIVATE industrial property rents fell for the fourth consecutive quarter in the three months ended September, although the pace of declines eased.

Data from DTZ Research shows that the average gross monthly rental value for first-storey private conventional industrial space fell 2.4 per cent to $2 per square foot in Q3 from $2.05 psf in Q2.

The drop was smaller than the 6.8 per cent slide seen in Q2. Similarly, the average rent for upper-storey space slipped 5.9 per cent to $1.60 psf in the latest quarter, smaller than Q2’s 8.1 per cent.

DTZ noted that the rental slide for high-tech industrial properties, which include business park and science park space, also moderated in the third quarter. After a 12.8 per cent drop in Q2, the average monthly rent for such space declined 5.9 per cent to $3.20 psf in Q3.

From their peak in Q3 last year, average monthly rents of first-storey and upper-storey private conventional industrial space have slipped 14.9 per cent and 22 per cent respectively. The average high-tech industrial rental value has lost 28.9 per cent over the same period. Continue reading →

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Posted in Office / Retail / Industrial

Tagged Industrial Rental, Industrial Space, Singapore Industrial

Market uncertainty colours bids for land

Posted on 1 Oct 2009 | Comments Off

THE aggressive bids which poured in for government residential land in the last few months show just how much the property market has improved.

But is the recovery real, and how much more can prices rise? The large divergence in bid values shows that even developers themselves may be unsure about what the future holds.

In August, a site at Chestnut Avenue drew 13 bids, and the highest of $280 per square foot (psf) of gross floor area (GFA) was some 87 per cent more than the lowest of $150 psf of GFA.

The spread between bids grew in the next two tender exercises last month. Another plot at Dakota Crescent pulled in 13 bids ranging from $247 to $508 psf of GFA – 106 per cent apart.

The third site at the corner of Yio Chu Kang Road and Seletar Road – with a commercial component – saw a top bid of $376 psf of GFA, which was 144 per cent more than the lowest bid of $154 psf of GFA.

To put these numbers into context, the spread between top and bottom bids for government residential land in 2007 and 2008 hardly exceeded 60 per cent.

Only two of 14 tender exercises recorded on the Urban Redevelopment Authority’s website in those years showed spreads above that level. So it is unusual that just between August and September, bid values in three consecutive tenders have diverged so widely. Continue reading →