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Industrial prices and rentals moderate further in Q2

Prices and rentals of industrial space moderated further in the second quarter this year as occupancy rates for the overall industrial property sector reached their lowest levels since 2007.

SINGAPORE: Prices and rentals of industrial space moderated further in the second quarter this year as occupancy rates for the overall industrial property sector reached their lowest levels since 2007.

According to JTC Corporation, overall industrial property occupancy rate for the three months ended June fell 1.7 per cent from a year ago, to 90.7 per cent. This came on the back of increased supply of industrial land by the government in recent years.

Meanwhile, rentals for industrial space rose by just 5 per cent year-on-year, about half of the average (10.2 per cent) growth per year over the last four years.

Prices of industrial space increased by about 4 per cent, moderating significantly from the average growth of almost 20 per cent per year in the last four years.

JTC says the government will continue to monitor the market, and release more land to suit different industry needs where necessary.

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