JTC Quarterly Market Report 1Q 2021: Occupancy rate is rising slightly

Singapore, 23 April 2021 – According to JTC corporation survey, in 1Q 2021, occupancy rate for the overall industrial property market rose by 0.1 percentage points on a quarter-on-quarter basis and 0.8 percentage points on a year-on-year basis to 90.0 per cent. Delays in completion continue to persist.

While 1 million square metres of industrial space was originally expected to be completed in 1Q 2021, actual completions were only about 131,000 square metres. Among the market segments, occupancy rates for multiple-user factory space rose by 0.5 percentage points on a quarter-on-quarter basis to 89.0 per cent amid rising demand. By contrast, the occupancy rates for the single-user factory, business park and warehouse segments all fell.

In line with the broad recovery of the economy, prices and rentals have continued to rebound. In 1Q 2021, price and rental indices of all industrial space rose by 0.9 per cent and 0.6 per cent respectively as compared to the previous quarter. However, the price and rental indices still fell by 1.3 per cent and 0.9 per cent respectively year-on-year.

As at end March 2021, around 2.4 million square metres of new industrial space is expected to be completed in the next three quarters of 2021. Of the upcoming supply, single-user factory space makes up about 44 per cent, multiple-user factory space makes up 31 per cent, while the remaining 25 per cent comprises warehouse and business park space.

As the economy starts to recover in 2021, the demand for industrial space is projected to increase. Any potential rise in occupancy is likely to be tempered by new completions and the increase in supply into the market. As such, prices and rentals are likely to remain stable. JTC will continue to monitor the market closely and support the needs of industrialists.

– Construction+ Online

Source: JTC