Industrial property markets worldwide showed signs of recovery in the second half of 2010, led by the Asia Pacific region.
This is according to a report by international property consultant, Colliers International, which tracked the performance of industrial property rents across 150 cities.
Singapore retained its position as the seventh most expensive location for prime warehouse space at US$15.71 per square foot per annum, and climbed two positions to the eighth most expensive location for bulk warehouse space at US$12.08 per square foot per annum.
Hong Kong slipped one spot for both segments. It dropped to fourth spot for prime warehouse and fifth spot for bulk warehouse.
Comparing Singapore to Hong Kong, rents were 8 per cent cheaper for prime warehouse space and 13 per cent more affordable for bulk warehouse space.
Ms Chia Siew Chuin, Director of Research and Advisory of Colliers International said the comparatively higher growth in Singapore came on the back of the increased demand for warehouse space owing to the improved business sentiment and the strengthening of the Singapore dollar against the US greenback.
Prime factory space in Singapore registered average monthly gross rents of S$2.10 dollars per square foot for ground floor space as of March this year.
The corresponding rates for warehouses were at S$2.20 dollars per square foot.
The report said that demand for industrial space in Singapore continues to be on an expansionary mode. Ms Chia expects industrial rents to grow between 5 to 10 per cent for 2011.
Tokyo, London’s Heathrow, Zurich, Geneva, Oslo, Sao Paulo, Helsinki and Moscow complete the ranking of the 10 most expensive warehouse locations in the world.
Source : CNA – 20 Apr 2011
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