Complete Property Market Updates of Singapore

May 1, 2008

More flatted-factory leases terminated in Q1

Filed under: 1 — Propertymarketupdates @ 2:55 am

23% of firms cited poor business as a factor for termination: JTC

TERMINATION of leases of JTC flatted-factory space, which is supported by manufacturing and services, hit 37,000 sq m in the first quarter of 2008 – 22 per cent higher year on year and 14 per cent higher quarter on quarter.

According to JTC’s quarterly facilities report for Q1, gross allocation of flatted-factory space, at 63,100 sq m, was 9 per cent down quarter on quarter but 122 per cent up year on year.

Net allocation was positive for a fourth straight quarter, though growth, at 28 per cent, was lower than in the preceding quarter.

JTC’s report also shows that 23 per cent of companies cited ‘poor business’ as a factor for termination, up from 7 per cent in Q4 2007. Only 35 per cent cited ‘consolidating operations’, compared with 54 per cent a quarter earlier.

Termination of ready-built facilities, which include flatted factories, increased 13 per cent year on year to 51,100 sq m.

But net allocation of ready-built facilities was six times higher year on year at 38,400 sq m, though this was almost 50 per cent down from the preceding quarter.

Overall occupancy increased 1.3 percentage points, raising the overall occupancy rate for ready-built facilities to a record 93.9 per cent.

Net allocation of technopreneur increased a modest 100 sq m in Q1. Demand was 12,900 sq m, while supply was unchanged at 15,100 sq m.

Gross allocation of business park space was 5,800 sq m, or 19 per cent lower year on year. Termination was 2,500 sq m, or 2 per cent lower year on year. As a result, net allocation was 3,300 sq m.

Gross allocation of standard factory space rose to 10,500 sq m while termination was flat at 2,300 sq m, resulting in net allocation of 8,200 sq m.

For stack-up factory space, demand and supply remained largely unchanged in Q1. Net allocation was 800 sq m. Gross allocation was 9,700 sq m while termination was 8,900 sq m.

Net allocation of prepared industrial land was 8 per cent lower quarter on quarter but 20 per cent higher year on year.

A larger proportion of gross allocation of prepared industrial land in Q1 was for manufacturing and supporting sectors.

The service and chemical sectors contributed 59 per cent and 22 per cent respectively to total gross allocation.

Source : Business Times – 30 Apr 2008

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