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Industrial property leasing gains momentum, but sales weak

Leasing activity in Singapore's industrial property market continued to gain momentum in the second quarter of this year, but sales remained weak.

SINGAPORE: Leasing activity in Singapore's industrial property market continued to gain momentum in the second quarter of this year, but sales remained weak.

This is according to the latest quarterly report by property consultant, Colliers International.

It said that the outlook for the sector for the rest of the year is mixed.

Colliers said the increase in the number of committed leasing deals was driven mainly by renewals, and relocation and consolidation activities.

Average monthly gross rents of prime factory space increased 2.8 per cent quarter-on-quarter to S$2.55 per square foot for ground-floor space, and 0.5 per cent quarter-on-quarter to S$2.14 per square foot for upper-floor space.

In contrast, strata-titled industrial sales remained subdued as buyers adopted a cautious and selective buying stance.

Going forward, the report said that the leasing market is expected to remain healthy, supported by the generally-better economic sentiment.

However, sales volume is projected to remain low.

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