Channel NewsAsia

Warehouse rents fell for 3rd straight quarter in Q2

Colliers International estimates that the average monthly gross rents of ground-floor warehouse space fell 1.6 per cent quarter-on-quarter to S$2.54 per square foot per month.

SINGAPORE: Rents for prime warehouse space in Singapore weakened for the third straight quarter in the April-June period, according to the latest report by property services firm Colliers International on Friday (July 11).

It estimates that the average monthly gross rents of ground-floor warehouse space fell 1.6 per cent quarter-on-quarter to S$2.54 per square foot per month.

The average rent for upper-floor warehouse space declined 2.4 per cent to S$2.04 per square foot.

However, the average rent of prime conventional factory space increased 2.8 per cent for ground-floor space to $2.55 per square foot and 0.5 per cent for upper-floor space to $2.14 per square foot.

Overall, the Colliers report says that activity in the industrial property leasing market gained momentum in the April-June period, but sales remained weak. 

In a separate report on the industrial property sector, Savills also said that leasing activity remained active in the second quarter, with 1,426 deals. However, sales volume fell 28.2% quarter-on-quarter.

Savills says a small number of manufacturers have started moving their operations to the Iskandar region, in an effort to reduce costs.

Tweet photos, videos and updates on this story to  @channelnewsasia