Demand for industrial land hits 10-year high
THE take-up of vacant industrial land that is ready for firms to develop their own facilities on shot up 153 per cent to hit a 10-year high last year, reflecting strong demand from local companies.
Singapore’s largest industrial landlord, JTC Corp, said the net allocation of this type of industrial land, which comes with road access/frontage and other facilities, was 174.1ha.
The largest taker was the logistics segment, which includes the chemical logistics industry, JTC said. Other big takers were the services and electronics and precision engineering industries.
Apart from steady economic growth, the cuts in JTC’s industrial land rents and prices in January and July last year also helped to spur demand, said a JTC spokesman. ‘The cuts…have helped to keep our industrial land internationally competitive.’
This prepared industrial land, as JTC calls it, also posted the lowest termination rate last year over the past decade, according to JTC’s industrial facilities report for last year released yesterday.
Total occupancy of JTC’s prepared industrial land last year stood at 81 per cent.
JTC’s ready-built facilities including standard factories and business parks also saw strong demand last year, with net allocation at 180,400 sq m, which was almost double that of 2004.
In the ready-built facilities segment, business park space was the star performer, largely because A*Star, the anchor tenant of Biopolis in one-north in Buona Vista, took up additional space there last year.
Business park space, also found at Changi Business Park and International Business Park, caters to the needs of industries involved in high value-added and knowledge-based activities.
Prepared industrial land is one area that JTC will be keeping as it prepares to narrow its focus on two key areas - strategic developments such as one-north and cutting-edge developments like the proposed underground caverns on Jurong Island.
This was made known in November when JTC said it will sell 2.6 million sq m of gross floor area of industrial facilities including 71 blocks of high-rise factories, three business park buildings and three workers’ dormitories.
Details of the sale will be finalised by the second quarter.
Source : Straits Times - 25 Jan 2006
Loading ...
Post a Comment
Tell me a bit about yourself; who you are, where you're from, what information you would like to see on this site. As I continue to provide you with Singapore property happenings, your feedback will encourage me to post more frequently. Thank you.