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INDEPEnDENT MARKET STUDY
By Colliers international consultancy & valuation (singapore) pte ltd
In terms of future supply, an
estimated 1.46 million sqm 6 (net
floor area) of light/conventional
factory space – based on URA’s
potential supply statistics as of 4Q
2009 – is expected to complete
between 2010 and 2014. This
represents an average addition of
292,000 sqm of light/conventional
factory space per year substantially
lower than the annual net new
supply of 493,000 sqm between
2003 and 2009.
Net new and potential supply of LIGHT INDUSTRIAL/
CONVENTIONAL FACTORY SPACE (as of 4Q 2009)
Net Floor Area (‘000 sqm)
1,200
1,000
800
600
400
200
Average monthly gross rents of PRIME MULTI-USER LIGHT/
CONVENTIONAL FACTORY SPACE
S$ per sq ft per mth
2003 2004 2005 2006 2007 2008 2009 2010F 2011F 2012F 2013F
F: Denotes Forecast
Source: URA/Colliers International Singapore Research
2014F
Demand and Occupancy
Similar to the business and science
parks as well as independent
multi-user high-specs industrial
segments, demand for light/
conventional industrial space
was affected by the unfavourable
economic and manufacturing
environment in 2009.
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: URA/ Colliers International Singapore Research
Ground Floor
Upper Floor
Net new demand for light/
conventional industrial space
(estimated based on the same
methodology adopted for supply)
totalled 773,000 sqm in 2009. Amid
weaker demand and increased
supply, the average occupancy
rate for such space eased by 0.8
percentage points from a year ago
to 92.7% as of 4Q 2009.
Rents of Light/
Conventional Multi-User
Factory Space
Reflecting the weaker demand,
average monthly gross rents of
prime 7 light/conventional multi-user
factory space saw double-digit
declines in 2009, after appreciating
for three consecutive years. However,
the rental slide eased in 2H 2009,
compared to the steep declines seen
in 1H 2009, following an improvement
in economic performance and
demand for space.
According to Colliers International’s
research, as of 4Q 2009, average
monthly gross rentals of ground
level prime light/conventional multiuser
factory space fell 24.0% YoY
6
Note that the level of potential supply could increase due to new projects that may be proposed in the next one to two years.
7
Good quality multi-level, multi-tenanted light/conventional factory space located in the central region of Singapore.
78 Ascendas real estate investment trust