JTC Corporation
Press Release 22 Jul 2021

JTC Quarterly Market Report 2Q2021

Executive Summary

1.   In 2Q 2021, occupancy rate for the overall industrial property market rose marginally by 0.1 percentage points compared to the previous quarter, and 0.7 percentage points compared to the previous year to 90.1%. While delays in completion continue to persist, new completions started to pick up in 2Q 2021, and the total available stock rose by 374,000 sqm compared to the previous quarter. This is the largest quarterly increase since 2017. Among the market segments, occupancy rate for multiple-user factory space rose by 0.7 percentage points compared to the previous quarter to 89.7% amid rising demand. In contrast, the occupancy rates for the business park and warehouse segments fell slightly by 0.3 and 0.1 percentage points as increases in supply outpaced new demand.

2.    In line with the broad recovery of the economy, prices and rentals have continued to rebound. In 2Q 2021, price and rental indices of all industrial space rose by 1.8% and 0.6% respectively as compared to the previous quarter, and 1.6% and 0.3% compared to the previous year.

3.    As at end June 2021, around 1.7 million sqm of new industrial space is expected to be completed in the second half of 2021. Of the upcoming supply, single-user factory space makes up about 46%, multiple-user factory space makes up 31%, while the remaining 22% comprises warehouse and business park space.

4.    As the economy continues its recovery in 2021, the demand for industrial space is projected to increase. Any potential rise in occupancy may however be tempered by new completions and the increase in supply into the market. Prices and rentals of industrial spaces are likely to remain stable. JTC will continue to monitor the market closely and support the needs of industrialists.

 

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