Costs and rents of industrial area in Singapore dropped marginally in the first quarter of the year, whilst occupancy stayed horizontal, but the information doesn’t capture the complete effects of the Covid-19 outbreak, said industrial property and infrastructure bureau JTC Corp.
Allgreen and Kerry submitted the highest bid of The Ryse Residences Pasir Ris price at $699,999,999.99, which is 3.28% higher than the $677,777,000 put forth by Far East Organisation. Based on the maximum Gross Floor Area (GFA) of 1,022,678 square foot, the land cost works out to be $684.48 mixed-used per square foot.
Since the pandemic continues to evolve, there could be downward pressure on costs and leases in the forthcoming quarters, in addition to potential delays in project completion, JTC explained.
The cost index dropped 0.4 percent quarter on quarter, although the leasing index dipped 0.1 percent. Meanwhile, the occupancy rate for industrial area held in 89.2 percent.
JTC stated:”The Q1 2020 statistics revealed market requirements from January to March 2020, prior to the circuit-breaker steps kicked in on April 7. Further, a number of these trades might have been pre-committed pre-Covid. That is in keeping with historic trends of previous financial events like the Global Financial Crisis in 2008, where effect on industrial rates and leases only begun to show in the subsequent quarter.”
The circuit breaker will bring delays in conclusion for a number of jobs given that building activities are stopped until June 1. Between Q2 2020 and Q4 2020, roughly 2.1 million square metres (sq m) of industrial space were initially slated for completion at the end March, but that will probably be delayed, JTC explained. About 37 percent of this distribution is single-user mill distance, while multiple-user mill distance accounts for another 40 percent of their distribution.
JTC also stated that according to the amount of caveats lodged for industrial properties, trade volumes in Q1 2020 dropped by 29 percent quarter on quarter and 38 percent from one year ago.
For industrialists appearing to own manufacturing distances, there were approximately 150 units in uncompleted improvements offered for sale at the close of Q1 2020.