JTC Corporation
Press Release 22 Apr 2021

JTC Quarterly Market Report 1Q2021

Executive Summary
  1. In 1Q 2021, occupancy rate for the overall industrial property market rose by 0.1 percentage points on a quarter-on-quarter basis and 0.8 percentage points on a year-on-year basis to 90.0%. Delays in completion continue to persist. While 1 million sqm of industrial space was originally expected to be completed in 1Q 2021, actual completions were only about 131,000 sqm. Among the market segments, occupancy rates for multiple-user factory space rose by 0.5 percentage points on a quarter-on-quarter basis to 89.0% amid rising demand. By contrast, the occupancy rates for the single-user factory, business park and warehouse segments all fell.
  2. In line with the broad recovery of the economy, prices and rentals have continued to rebound. In 1Q 2021, price and rental indices of all industrial space rose by 0.9% and 0.6% respectively as compared to the previous quarter. However, the price and rental indices still fell by 1.3% and 0.9% respectively year-on-year.
  3. As at end March 2021, around 2.4 million sqm of new industrial space is expected to be completed in the next three quarters of 2021. Of the upcoming supply, single-user factory space makes up about 44%, multiple-user factory space makes up 31%, while the remaining 25% comprises warehouse and business park space.
  4. As the economy starts to recover in 2021, the demand for industrial space is projected to increase. Any potential rise in occupancy is likely to be tempered by new completions and the increase in supply into the market. As such, prices and rentals are likely to remain stable. JTC will continue to monitor the market closely and support the needs of industrialists.

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