Resale prices of industrial space on the rise

There are signs of speculation developing in areas of the industrial property sector, analysts say, but they are divided over whether there is overheating and if the government should step in.

Resale prices for industrial space continued to rise in the third quarter, while industrial rents held firm.

Resale industrial prices for first-storey conventional industrial space rose 4 per cent in Q3, to $600 per square foot (psf), compared with the previous quarter. This was at the same rate as the previous quarter.

For upper-storey industrial space, prices grew 3.5 per cent to $445 psf from the previous quarter, slowing from 4.9 per cent growth in Q2.

Rents for first-storey conventional industrial space were at an average of $2.15 psf per month, while upper-storey rentals averaged $1.75 psf per month, the same levels as Q2. Hi-tech industrial rents edged up 0.07 per cent from the second quarter, to $3 psf per month.

Source: Business Times – 10 October 2012