JTC’s statistics released showed the all-industrial rental and price indices headed north for the 12^th consecutive quarter, gaining another 2.0% and 1.4% q-o-q, respectively, in 3Q23. By Tan Boon Leong, JLL Executive Director, Logistics & Industrial, Singapore 陈文龙， 执行董事，产业与物流 (新加坡)

Rent growth in 3Q23 was driven by the logistics/warehouse segment, which recorded the steepest q-o-q rise among all the industrial property categories tracked by JTC. The faster q-o-q pace of growth came on the back of a persistent supply crunch which drove the islandwide logistics/warehouse vacancy rate down to 8.7% in 3Q23, its lowest level in three quarters.

Meanwhile, rent growth for multiple-user factory premises slowed for the first time in seven quarters, as the fourth consecutive q-o-q contraction in manufacturing output weighed on leasing demand in 3Q23. Reflecting this, data from J-Space showed the number of multiple-user factory tenancies fell from 2,522 in 2Q23, to 2,461 in 3Q23.

The above, coupled with the high interest rates, likely contributed to the slowing price growth for the multiple-user factory segment in 3Q23. Based on JTC’s data, prices of multiple-user factories grew at its slowest q-o-q pace in eight quarters.

Overall, the 7.1% and 4.5% gains in islandwide rents and prices in the first three quarters of 2023, respectively, have tracked expectations. While there is potential for rents to post full-year gains of around 8-9% in 2023, up from 6.9% in 2022, we kept our view of price growth moderating from 7.5% in 2022 to around 5-6% in 2023. Growth will likely extend into 2024 for both rents and prices.

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