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News Release


JLL News Flash | Release of JTC’s quarterly industrial property report, 2Q17

​Tay Huey Ying, Head of Research and Consultancy, Singapore

郑惠匀, 研究与咨询部主管 (新加坡)

Signs of a slowing downcycle have emerged

JTC’s latest statistic​s showed that Singapore’s industrial property market remained weak in 2Q17 with rents posting its ninth consecutive quarter of decline.

Nonetheless, it is worth noting that there are emerging signs of a slowing downcycle. For one, rental declines have stayed moderate at below one per cent per quarter for three straight quarters. Secondly, net absorption over the last one year has averaged 359,000 sqm per quarter. This is an almost 50% improvement over the 243,000 sqm averaged in the year prior. 

The rebound in manufacturing and trade activities since the later part of 2016 has likely contributed to this seemingly slowing downcycle.

The brightest spot in the industrial property market remained the Business Park segment. JTC’s statistics showed that the rents for Business Park space bucked the declining trend by posting a 2.1 per cent q-o-q uptick in 2Q17 on the back of the fourth consecutive quarter rise in occupancy rate amid relatively stable supply stemming from a lack of new completion.

JLL’s research showed that the average monthly gross rents of Business Park space firmed in 1Q17 by a marginal 0.3 per cent q-o-q and held stable in 2Q17 at SGD 3.71 per sq ft per month.


We expect industrial rents to continue to come under downward pressure as full-year net new supply is likely to come in at above two million sqm – a figure not seen since the 2.1 million sqm in 1997.

Nonetheless, given the more upbeat economic outlook and moderating rental declines seen in 1H17, the full-year overall industrial rents could decline at a less pronounced pace than 2016’s 6.8%. This is barring any unforeseen external shocks.

The business park segment is expected to outperform the general market given steady demand amid a dearth of new supply in 2017.