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to S$1.87 per sq ft, while rents for
upper floor space was down 11.0%
YoY to S$1.61 per sq ft.
logistics and distribution
centres
Existing and Future Supply
The total stock of warehouse
space in Singapore amounted to
6.87 million sqm as of 4Q 2009, up
4.1% YoY. The bulk or 99.3% of this
existing supply was owned by the
private sector, with the public sector
holding only a small 0.7% share.
In 2009, some 269,000 sqm of new
space was added to the warehouse
market. Compared to 2008, the
net increase in warehouse space
was 21.8% lower, albeit this was still
higher than the annual average of
167,000 sqm added over the ten
years from 1999 to 2008.
Geographically, the majority 58.0%
or 3.99 million sqm of this islandwide
warehouse supply was located
in the West region. The next largest
concentration of warehouse space
was in the Central region with an
18.8% market share, followed by
the East (13.2%), North (5.5%) and
Northeast (4.5%) regions.
Net new and potential supply of WAREHOUSE SPACE
(as of 4Q 2009)
Net Floor Area (‘000 sqm)
400
350
300
250
200
150
100
50
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010F 2011F 2012F 2013F 2014F
F: Denotes Forecast
Source: URA/Colliers International Singapore Research
Between 2010 and 2014, the
quantum of new warehouse space
is expected to be relatively low,
averaging about 74,000 sqm (net
floor area) per annum or about
370,000 sqm 8 in total, based
on URA’s statistics on potential
supply as of 4Q 2009. This was a
substantial 72% lower than the
269,000 sqm added in 2009, and
58% less than the ten-year average
annual net new supply of 176,000
sqm from 2000 to 2009. Of the
upcoming supply, an estimated
56% are expected to be single-user
warehouse space, with multi-user
warehouse space accounting for
the remaining 44%.
Demand and Occupancy
As net new demand for warehouse
space consistently exceeded net new
supply between 2004 and 2008, this
supported occupancy levels which
improved from a low of 84.8% as of
end-2003 to 92.8% as of end-2008.
However, the average occupancy
rate eased in 2009 to 90.0% as of
4Q 2009. This was due to the 44.7%
YoY jump in vacant space to 690,000
sqm, after net new demand for
warehouse space plunged by 86.1%
YoY to 56,000 sqm on the back of a
weak manufacturing sector, while
net new supply remained high at
269,000 sqm.
Rents of Multi-User
Warehouse Space
Weak demand, coupled with a rise
in vacant space exerted downward
pressure on rents of multi-user
warehouse space in 2009 after
staying largely unchanged in 2008.
8
Note that the level of potential supply could increase due to new projects that may be proposed in the next one to two years.
8th Annual Report FY09/10
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