Chart of the Day: Prices of upper-storey factories, warehouses slipped 0.1% to $477psf

What could this imply?

According to Savills, sales of industrial properties fell for the third consecutive quarter in Q1/2014. The total number of strata factory and warehouse caveats lodged in the first quarter of 2014 was only 393, a decline of 35.7% quarter-on-quarter (QoQ) and 50.1% YoY.

The quarterly decline is seasonal, whereas the YoY decline is largely due to the implementation of the total debt servicing ratio (TDSR) in late June 2013.

Here's more from Savills:

We also noted that 60-year leasehold properties were more actively traded compared with 30-year leasehold and freehold units.

Prices of industrial properties tracked by Savills were relatively stagnant in Q1/2014 despite the decline in sales volumes. Prices of 60-year leasehold properties slipped 0.1% QoQ from S$477 to S$476 per sq ft, while freehold properties remained flat at S$681 per sq ft in Q1/2014.

However, 30-year leasehold properties managed to climb by another 1.3% QoQ. The fact that prices did not decline in step with transaction volumes indicates a resistance from developers and owners against the impact of the surge in supply in 2014, which is expected to be 34.7 million sq ft GFA.

Also Read

One Sophia sells 30% of units at weekend launch

SLA launches tender to revitalise Tanjong Katong Complex

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit