Total site area of 19.92 ha up for grabs

The Ministry of Trade and Industry (MTI) has launched its Industrial Government Land Sales programme for the second half of 2010.

There will be three sites in the Confirmed List and seven sites in the Reserve List, with a total site area of 19.92 hectares.

The three sites on the Confirmed List are at Kaki Bukit Avenue 4, the plot at the junction of Yishun Street 23 and Yishun Avenue 9, and the land parcel at the junction of Old Toh Tuck Road and Toh Tuck Avenue.

MTI will also introduce four new sites on the Reserve List at Woodlands Avenue 12, Tuas View Square, Kaki Bukit Road 4 and Ang Mo Kio Street 62.

In addition, three sites from the first half of the 2010 Reserve List will be carried forward to the second half of the year.

Source: Today, 30 Jun 2010

RENTS for factories and warehouses turned around in the second quarter, rising for the first time since Q3 2008, DTZ said yesterday.

The property consultancy said the average monthly gross rent for first-storey private conventional industrial space was $2 per sq ft in Q2, up 2.6 per cent from Q1. The rent for upper-storey space was $1.60 psf, up 3.2 per cent.

According to DTZ, the average monthly gross rents for first and upper-storey private industrial space are down 14.9 and 22 per cent respectively from their peaks in Q3 2008.

Colliers International’s director (industrial) Tan Boon Leong also said rents for factories and warehouses edged up in Q2. ‘This is in line with the increase in factory orders, which in turn led to higher demand for industrial space,’ he said.

In May, Singapore’s manufacturing output surged 58.6 per cent year on year, driven largely by higher biomedical output.

Greater demand for industrial space has come mainly from higher-end manufacturers such as those in electronics and precision engineering, Mr Tan said.

He believes factory and warehouse rents will continue to rise in small steps this year, as manufacturers still need to utilise excess capacity carried over from the downturn.

DTZ has a similar view. ‘Industrial rents are likely to continue to increase but at a slow pace given the stream of about 15 million sq ft of private industrial space in the pipeline over the next one and a half years,’ said its South-east Asia research head Chua Chor Hoon.

The outlook for hi-tech industrial space is less bright. In Q2, the average monthly gross rent for business, science park and other space in this sector was unchanged at $3.15 psf.

DTZ does not expect hi-tech rents to move much this year, with a significant amount of business park space expected to come on stream in the second half.

There will also be competition for tenants from commercial space in secondary locations, said DTZ’s executive director (business space) Cheng Siow Ying. ‘The narrow rental gap between decentralised offices and hi-tech industrial space provides little impetus for upward movement of hi-tech industrial rents.’

Source: Business Times, 29 Jun 2010

The Ministry of Trade and Industry (MTI) has launched its Industrial Government Land Sales programme for the second half of 2010.

There will be three sites in the Confirmed List and seven sites in the Reserve List, with a total site area of 19.92 hectares.

The three sites on the Confirmed List are at Kaki Bukit Avenue 4, the site at the junction of Yishun Street 23 and Yishun Avenue 9, and the land parcel at the junction of Old Toh Tuck Road and Toh Tuck Avenue.

MTI will also introduce four new sites on the Reserve List, at Woodlands Avenue 12, Tuas View Square, Kaki Bukit Road 4 and Ang Mo Kio Street 62.

In addition, three sites from the first half of the 2010 Reserve List will be carried forward to the second half of the year.

Source: Channel News Asia, 29 Jun 2010

Rents for industrial space rose for the first time after falling from its peak in the third quarter of 2008.

According to DTZ Research, average monthly rents of first-storey private industrial space rose 2.6 per cent quarter-on-quarter to S$2 per square foot, while upper-storey space rose 3.2 per cent quarter-on-quarter to S$1.60 per square foot per month.

Rents for hi-tech industrial properties, however, were unchanged at S$3.15 per square foot per month in the second quarter of this year.

According to Chua Chor Hoon, head of DTZ’s Southeast Asia Research, industrial rents are likely to continue to rise but at a slow pace given the stream of private industrial space coming onboard within the next 18 months.

However, hi-tech rents are expected to be largely unchanged due to a large amount of business park developments expected to be completed in the second half of the year.

Source: Channel News Asia, 28 Jun 2010

JTC is working on innovative ways to create new waterfront resources

SINGAPORE wants to maintain its leadership position on the global marine and offshore landscape. And with this in mind, the city-state is meeting a key challenge – the scarcity of waterfront land – head on.

Industrial landlord JTC has been looking at innovative ways to create new waterfront resources. And through its efforts, the government agency plans to ensure the continued growth of the offshore and marine sector by bringing in new waterfront activities and allowing for expansion by existing players.

Singapore has been a big beneficiary of the strong worldwide high growth of the offshore and marine industry in recent years. An expert cluster of marine-related service companies – including those providing classification services, maritime law and insurance services and offshore support services – has developed here.

In 2008, Singapore’s marine and offshore industry output grew to $18.3 billion, which represents a compound annual growth rate of almost 30 per cent over the past five years. This makes the sector one of the fastest growing parts of Singapore’s economy in the past few years. The sector’s value-added in 2008 was $4.5 billion and the industry employed almost 70,000 workers that year.

Over the past few years, several world class global offshore and marine companies have either set up or expanded their operations in Singapore. They include Rolls-Royce from the UK, Halliburton from the US, Berg Propulsion from Sweden and Toll Offshore Petroleum Services from Australia.

Just a few months ago, Houston-based engineering Dril-Quip said it would develop a new $45.6 million facility at Tuas. this will handle all of the company’s manufacturing operations for the Asia-Pacific and Middle East.

To support these and other global companies in their Singapore ventures, Singapore plans to sharpen its competitive advantages to entrench itself as an offshore and marine hub of choice.

JTC chief executive Manohar Khiatani said during the ground-breaking ceremony for the Dril-Quip facility that given the importance of the offshore and marine sector, all relevant government agencies – the Economic Development Board, Spring, the Agency for Science, Technology and Research and JTC – have been working together to grow the industry in Singapore.

This includes continuing to attract expert players to set up here and channelling investments and resources to develop the entire value chain, which ranges from shipyards and component manufacturing to companies offering naval architecture and marine engineering services.

And in addition to all this, JTC is looking to address Singapore’s ever-present problem – a shortage of land.

‘For its part, JTC has been looking at innovative infrastructural solutions to overcome some key challenges faced by the industry,’ Mr Khiatani said. ‘One of these is to come up with innovative ways to overcome the scarcity of waterfront land in Singapore.’

The agency is creating resources such as a new offshore marine centre, multi-vessel berthing structures and an integrated shipyard. It is also finding new waterfront land for industrial use.

Offshore marine centre

JTC is developing an offshore marine centre at a 13-hectare site in Tuas View. The multi-user facility will provide common waterfront and berthing facilities for offshore and marine companies involved in the manufacturing and fabrication of heavy equipment, components or structures. This will come in handy, as demand for such facilities is growing, market watchers say.

Multi-vessels berthing structures

JTC is also looking at redesigning Singapore’s jetties to allow more vessels to berth along the same waterfront length.

The current system of using tugs for side-berthing will be replaced by a trolley and winch system to berth ships. This means that there will not be a need to provide navigational space for tug-boats, which JTC says can increase berth space along a waterfront by between 25 and 50 per cent.

‘The project will increase our potential to attract key investors from the oil and petrochemical industries who require waterfront infrastructure to support their business operations, thus strengthening Singapore’s position as a leading oil trading hub,’ JTC said.

Integrated yard facility

Singapore’s marine and offshore industry took a major step forward with the announcement in late 2009 that Sembcorp Marine will build an integrated yard at Tuas – the country’s first new-built yard in a generation.

The first phase of the 206 ha state-of-the-art yard is expected to cost about $750 million and to be completed by 2013.

The yard will boast a revolutionary design as well as the latest production technology and processes. As a result, land use will be optimised and supply-chain efficiency will be improved – achieving a jump in productivity, resource optimisation and operational synergy.

‘This first integrated yard is another example of how Singapore plans to stay at the forefront of the marine and offshore industry,’ said EDB chairman Leo Yip. ‘It will sharpen our competitive edge and reinforce our global leadership position in this industry.’

The increased flexibility that will come from cross-deploying workers and allowing them to multi-task will also improve and upgrade the quality of the work force here, JTC and EDB said.

Development of the 73.3 ha first phase of the yard will start next month and is expected to take four years. The remainder of the site will be developed in two more phases over 12 years.

When completed, the new yard will increase total dock capacity 62 per cent to 3.08 million deadweight tonnes (dwt), from 1.90 million dwt now, and will feature optimised docking and berthing facilities. An improved dock and quay ratio will ensure effective utilisation and faster turnaround for repairs and upgrading of ships, rigs and other floating structures.

The first phase will more than triple the land area from the current 20 ha, almost quadruple drydock capacity to 1.55 million dwt from the current 400,000 dwt and boost quay length almost three-and-a-half times from 1,071 to 3,408 metres.

Integrated facilities and newer technology will make the yard more efficient and productive, which will boost capacity and profitability, according to Sembcorp Marine president and chief executive Wong Weng Sun.

Mr Wong also expects productivity at the new yard to increase at least 15-20 per cent.

Utilising currently non-usable waterfront land

JTC has also earmarked a 40 ha site with around a kilometre of water frontage at Tuas West for future stock. Although the water depth here is only one to 3 metres – making it unsuitable for industrial activity – JTC is looking at the feasibility of improving this.

Looking ahead, land supply will continue to be a challenge to Singapore, JTC says.

And while land scarcity here is not new, the nature of the challenges faced by the agency has changed, which means it will work to come up with new solutions for the growing marine and offshore sector.

Source: Business Times, 22 Jun 2010

Singapore’s first business park catering to green companies will serve as a large-scale ‘living laboratory’ for testing and demonstrating clean technology

JTC is changing the approach to urban development and master planning with its CleanTech Park – Singapore’s first business park catering to green companies.

The 50-ha eco-business park at Nanyang Avenue is pitched as the location of choice for forward-looking companies that have embraced environmental sustainability. Joint developers JTC and the Economic Development Board hope the project will push the boundaries of sustainability by serving as a large-scale ‘living laboratory’ for testing and demonstrating clean technology.

When completed in 2030, the park will create 20,000 ‘green-collar’ jobs. It will be built in three phases at an infrastructure cost of $52 million, excluding buildings.

CleanTech Park will be an icon for the development and application of clean technologies, and JTC will push the envelope in a ‘practical and cost-effective way’, says the industrial landlord’s chief executive Manohar Khiatani.

‘As an infrastructural solutions provider, JTC has always placed priority on developing innovative and sustainable real estate solutions to meet the needs of our customers operating in resource-challenged Singapore,’ he says.

Work on the first phase of the project begins next month, starting with the development of infrastructure within CleanTech Park. When completed, phase one will provide about 17 ha of business park land.

The blueprint for the first cutting-edge building in the park was recently unveiled by JTC. The $90 million building – CleanTech One – will offer about 404,000 sq ft of office space that can house up to 50 green businesses when it is completed by December next year.

The building will incorporate state-of-the-art green features such as solar energy systems, rainwater harvesting, sky gardens and sustainable construction.

Urban modelling

JTC’s master plan for CleanTech Park uses information that has been collected about the site and takes into account such factors as solar exposure, rainfall, prevailing wind, topography and vegetation density.

The agency used a modelling tool from a consultancy – Camp, Dresser and McKee or CDM – to help design the urban fabric, so the project can make the most of the natural elements.

CleanTech Park will go up on a large contiguous greenfield site with natural undulating terrain and mature greenery with natural streams running through it.

In drawing up the masterplan using urban modelling, strong emphasis was placed on finding a long-term sustainable balance between the development’s commercial needs and the site’s natural bio-diversity. For example, in the interest of landscape conservation, a minimal ‘land-cut’ principle was adopted for both infrastructure planning and at individual land parcel and building level.

One of the innovative ideas that will be tested in CleanTech Park is JTC’s sky trellis concept. Trellises will be constructed between adjacent buildings and covered with plants to provide shade and enhance ‘walkability’ in the area.

Eco-concrete – instead of natural aggregates and sand – will be used for non-structural elements such as roads, pavements and drains.

CleanTech Park will also be the first large scale project to light roads with LED street lamps. By replacing the usual street lighting, light pollution can be minimised and energy consumption can be reduced as much as 40 per cent, JTC says.

Provisions to link buildings with an integrated ‘smart dashboard’ system will also be in place, so energy and water use can be compared at district-level. This will provide feedback to individual building owners and their tenants so they can improve if needed.

Another innovative solution by JTC is decentralised district cooling. This means excess air-conditioning capacity from a group of buildings may be able to power the air-conditioning for another building. In line with this, piping that can link chilled water from one building to another will be constructed as part of the infrastructure to support such a system.

CleanTech One, the the first building in CleanTech Park, will also have its own green features.

Innovative technological applications at CleanTech One will include an integrated hydrogen fuel cell plant using bio-fuels to produce hydrogen on-site to drive fuel cells, which in turn produce renewable energy.

A bio-digester will also be installed. With the help of micro-organisms, food waste will quickly decomposed in the bio-digester – removing odour and leaving water and carbon dioxide as end-products.

Energy from the sun will be harnessed directly to power the air-conditioner chillers. This method is more efficient than converting solar energy to electricity before use, JTC says. Solar panels will also be used.

Demand for green space

Real estate space with a ‘green’ proposition is starting to attract more interest among prospective tenants – which is good news for CleanTech Park and its buildings.

‘Companies are increasingly interested in commercial and research space that is eco-friendly,’ says EDB managing director Beh Swan Gin. ‘CleanTech Park will offer these progressive investors an attractive option and foster the clustering of like-minded companies in one location.’

JTC’s Mr Khiatani says similarly that environmental sustainability will be a ‘natural direction’ for businesses to take in the future. He adds: ‘CleanTech Park will be emblematic of how businesses can achieve both economic vibrancy and environmental sustainability, functioning in harmony with nature.’

Independent data supports these claims. A global survey on corporate real estate and sustainability by CoreNet Global and Jones Lang LaSalle, conducted late last year, showed corporate real estate executives are willing to invest in the sustainability of the space they own, despite economic pressures.

The survey found 89 per cent of these executives worldwide consider sustainability criteria in their location decisions. Green building certification is always considered by 41 per cent and energy labels by 46 per cent in administering their portfolios.

More stakeholders are also beginning to take a more holistic approach to doing business, which means they factor in the social and environmental effects of their business decisions.

In fact, CleanTech Park has already attracted some interest from tenants. Nanyang Technological University (NTU) has signed on to become the first anchor tenant. The university will help seed research and development activity at the park.

NTU has said that having CleanTech Park next to the university is significant, as it will help academics work seamlessly with key industry partners in the park and allow NTU students to gain invaluable opportunities for attachment and hands-on experience in state-of-the-art green technologies.

EDB likewise thinks CleanTech Park’s tenants will benefit from the proximity to NTU, which could promote cross-fertilisation of knowledge and ideas to facilitate the development and demonstration of systems-level cleantech solutions.

The Singapore government is committed to growing the cleantech industry as a key cluster. The sector is expected to contribute some $3.4 billion to Singapore’s GDP and employ 18,000 people by 2015.

CleanTech Park, in particular, is poised to boost Singapore’s leadership position as an innovative CleanTech hub, EDB and JTC have said.

Source: Business Times, 15 Jun 2010

JTC is taking a multi-pronged approach, exploring edgy ideas and methods for industrial land development

A ‘SHIP to showroom’ warehouse with a retail complex at one of Singapore’s harbours. A recycling industrial park. A giant hoisting system to move bulky goods to companies on high floors. These are just some ground-breaking structures that Singapore could soon have as JTC explores cutting edge ideas and unconventional methods to intensify the use of industrial land.

And in the process, the industrial landlord could very well push boundaries to create new industrial standards.

‘Right now, industrial land sites in Singapore usually have a maximum gross plot ratio of 2-2.5. We want to increase the plot ratio to 4-5 in future for specific industrial plots,’ said Koh Chwee, director of JTC’s engineering planning division said.

‘We have a multi-pronged approach in maximising the limited land resources we have in Singapore. One method is to build industrial complexes with high plot ratios that are also sustainable in the long run.’

All of the ideas being tossed around now will intensify land use. The giant hoisting system, for example, will allow developers to build taller industrial facilities and intensify land use by at least 20 per cent. Another idea, which looks at housing factories, warehouses and workers’ dormitories in a single complex, could cut land take-up by about 35 per cent with shared driveways and fewer setbacks.

Megastructures

JTC staff got the idea for the first concept – a cluster industrial complex with mega hoist – from looking at how cranes at ports work. They came up with a design that incorporates a huge hoist in the middle of a complex. Factories can occupy one side of the complex and warehouses the other, sharing the hoist and loading bay for moving goods.

The complex could be five storeys, with a plot ratio of 2.5 – about 25 per cent higher than the plot ratios for comparable stack-up factories. And because there is no need for a vehicle ramp for trucks to transport goods to higher floors, the design saves up to 0.5 ha of land area.

The second design is based on a ‘plug-and-play’ concept. A row of warehouses, logistics facilities, car parks and other amenities will form a central ‘spine’. Flatted factories and workers’ dormitories will be built on top of this spine.

Industrialists can then ‘plug in’ to this spine by building their own modular factories along it. At the same time, they can share car parks, access ways for moving goods and other amenities.

Locating various facilities together means less space needs to be set aside for internal driveways and setbacks. This complex can have a plot ratio of 1.5, almost double the 0.85 for a comparable standard factory today.

In addition to drawing on its own reserves JTC is also looking at ideas from the private sector and academic institutions in a bid to make more efficient use of Singapore’s limited land.

The agency is working with the Centre of Design Research from the National University of Singapore’s Department of Architecture to fund a project for students to come up with designs for sustainable industrial complexes with high plot ratios.

To date, several innovative ideas have already been mooted. And even though there is still a fair bit of work to be done before any of the ideas can be implemented, they have the seeds of great potential, JTC said.

One such idea deals with building a new mega scaffolding structure over an existing development. A site in Jurong Industrial Estate is being considered for this and JTC hopes to develop a vibrant high plot ratio industrial complex with green features.

In the blueprint, amenities such as cafeterias, commercial outlets, business centres and outdoor green areas will be interspersed between the first two layers of factory spaces.

The top-most layer of the mega scaffold will have winches and gantry cranes to support warehousing and industrial operations within the complex. The overhead machinery will reduce the need for vehicular ramp access from roadways at ground level. Containers can then be loaded and/or unloaded at dedicated loading and unloading bays at the ground level.

In this way, buildings on the ground could continue to operate until redevelopment into buildings with higher plot ratios in future. These buildings would also enjoy energy savings from cooling due to shielding from solar radiation, JTC said.

Yet another idea is to have a ‘recycling industrial complex’ to house the entire value chain of recycling businesses that could spawn an entire new industry for the manufacturing and transaction of materials and products made from recycled wastes.

A multi-storey car park without ramps could also be integrated with this complex. Cars will be conveyed by a computerised motorised lift system to various floors. In this way, the space used for ramps and driveways can be saved, and there will be low floor-to-ceiling heights since only cars will be stored. Land use is intensified as the parking capacity per plot can at least be doubled.

A third idea envisioned by NUS’s Department of Architecture is a ‘from ship to showroom’ complex around one of Singapore’s harbours – such as the port at Pasir Panjang – where goods could be shipped in and stored in warehousing facilities within the complex, or delivered directly to showrooms within the site where they can be put to other uses.

Cutting edge ideas

The complex will therefore be a novel one-stop mega container port complex where space is optimised ‘at berth’. Events such as the Singapore Motorshow could then be held at the complex itself once the cars arrive by boat, which will eliminate the need to truck them to other parts of the island in order to exhibit them.

In addition, the complex could also have living quarters such as blocks of HDB flats stacked on top of the roof. This will allow the land that the complex is situated on to be put to maximum use, and residents will also be able to enjoy views of the harbour – typically enjoyed just by visitors to the port.

Seeking a new set of minds from Singapore’s educated talent is one way in which JTC expands its horizon on innovative land.

It is also working to make sure that the ideas keep flowing: JTC recently took the unprecedented step of opening up its innovation ‘dream fund’ – created in 2004 to fund innovative projects internally – to external partners.

The agency will provide funding of up to $1 million for ‘cutting edge’ project proposal from the private and public sectors and academic institutions on how to intensify land use and create new industrial space.

‘Innovation is a high priority for JTC and we recognise that we can increase our capacity for innovation if we pro-actively reach out to external partners,’ said JTC chief executive Manohar Khiatani. ‘With this initiative, we hope to seek new inspiration to complement our own ideas and boost industry research in optimising, intensifying and creating new industrial space for the advancement of the economy.’

Proposals should consider three main areas: clustering relevant industries for increased synergy; reducing land use for infrastructure, transport networks, buffer zones and other facilities; and mitigating issues relating to high-rise industrial operations such as goods handling, vibration and urban heat.

The fact that the ‘dream fund’ is now open to external parties underscores JTC’s (and the government’s) commitment to the intensification of industrial land use – in line with what was recommended by the Economic Strategies Committee in early February. The committee’s report said that Singapore has to support the intensification of industrial land use as there are now greater demands on the country’s limited land resources.

As the local economy recovers – and the industrial sector along with it – JTC is poised to support industrialists with these new and innovative industrial development concepts which are slated to sharpen Singapore’s competitive edge in industrialisation.

Source: Business Times, 8 Jun 2010

Wilson Ang leaves Cambridge Industrial Trust Management

VETERAN industrial property consultant and former CEO of Cambridge Industrial Trust Management Wilson Ang has returned to Colliers International.

He has been appointed consultant for industrial property investment in Asia. Based in Singapore, he will be part of the Asia Industrial Services team.

His immediate focus is Greater China and India, advising building owners, private investors and funds and institutions on their real estate portfolios and helping meet their requirements across Asia, Colliers said yesterday.

Mr Ang was with Colliers for 13 years and was executive director and head of the industrial sales and leasing division when he left in 2005. During those years he was responsible for more than $1 billion of industrial investment sales.

He went on to co-found Cambridge Industrial Trust and put together a portfolio of industrial properties for its listing.

He also took the trust through the listing process and managed it post-float.

He left as Cambridge’s manager last year.

Dennis Yeo, managing director of Colliers International Asia Industrial Services and Colliers International Singapore, says: ‘Given Wilson’s wealth of experience and strong track record in the industrial market, he will further strengthen Colliers’ position … and grow our industrial investment business.’

Mr Yeo said Mr Ang’s experience as an industrial property broker, advising owners and real estate investment trusts, coupled with his experience at Cambridge, mean his services will be sought after in Greater China and India, where the Reit industry is still in its infancy.

Mr Ang, 45, has a Bachelor of Science degree, majoring in estate management from National University of Singapore.

The former Catholic High School student lists playing golf, swimming and working out at the gym and spending time with his family as his hobbies.

Source: Business Times, 8 Jun 2010

THE Urban Redevelopment Authority (URA) has made a 30-year leasehold industrial site at Pioneer Road North / Soon Lee Street available for sale.

The land parcel is on the reserve list, and interested developers can ask URA to put it up for tender.

The site spans 155,427 sq ft and has a maximum gross plot ratio of 2.0. It is zoned for Business 2 use, making it suitable for clean industries and other activities such as vehicle repair and furniture production.

The land parcel is near Pioneer MRT station. It is also right next to a site which URA sold in December last year. KNG Realty beat stiff competition from seven other developers to win that site then, with a bid of $19.4 million or $48 per sq ft per plot ratio (psf ppr).

Demand for industrial sites in the last few months has been strong as the economy picked up. In April, the tender of a larger 60-year site at Woodlands Avenue 12 drew six bids, with the highest one at $65.2 million or $75 psf ppr.

Colliers International said this month that demand could grow further, as manufacturers expand their operations and institutional funds return to scout for investments. Already, the average monthly gross rent at single-user factories in the central part of Singapore has increased by 3.8 per cent to $1.35 psf between October last year and March this year. Capital values of such properties have also risen.

Source: Business Times, 28 May 2010

(SINGAPORE) Rents, land values and capital values of conventional industrial space in Singapore could rise 10 per cent in the next 12 months, as the economy improves and institutional investors return, said Colliers International yesterday.

The consultancy found that the market for factories and warehouses has already picked up in the six months from October last year to March this year.

During the period, the average monthly gross rent for single-user factories in central Singapore increased by about 3.8 per cent to $1.35 per sq ft. Capital values for this type of property also inched up 3.6 per cent to $145 psf.

Separately, warehouses in the eastern part of the island saw their average monthly gross rent rise 6.7 per cent to $1.28 psf. Their capital values also went up 6.2 per cent to $138 psf.

Conditions were not as rosy for high-specification industrial developments – rents for this type of space continued to fall, albeit at a slower rate. Over the six-month period, the average monthly gross rent for high-spec space dropped 5.1 per cent to $2.78 psf.

The silver lining is that the occupancy rate for high-spec space has been stable. Colliers attributed this to firmer office rents in a recovering commercial market – this has discouraged tenants occupying high-spec space from moving back to offices.

Colliers expects the overall industrial property market here to do better as the economy continues to pick up. ‘The recovery in the exports and manufacturing sector should support an expansion in demand from manufacturers,’ its research and advisory director Tay Huey Ying said.

‘Coupled with the return of institutional funds to the industrial market, rents, land and capital values of single-user factories and warehouses are expected to increase up to 10 per cent in the next 12 months.’ Ms Tay also expects rents of high-spec space to bottom out this year.

Besides Singapore, most Asia-Pacific cities have seen their industrial property markets stabilise, Colliers noted. For instance, industrial rents in Delhi, Guangzhou, Shanghai and Hong Kong have hit the trough.

Source: Business Times, 14 May 2010