The cost of renting industrial space has consistently fallen throughout the third quarter of this year. The drop is thought to be the result of pessimistic predictions for the future of manufacturing Hong Leong Holdings Condo and decreased exports, as well as a long running supply deficit.
The JCT report published this week states that total industrial prices dropped 0.3% throughout both last quarter and last year.
Also, rent prices dropped 0.8% during the second quarter and 1.6% over last year.In addition, occupancy statistics in Lorong Lew Lian Condo decreased by 0.2% during the last quarter and 0.1% during the last year. Within the third quarter of the year, they stood at 90.8%.
Rents at Lorong Lew Lian Condo CDL
The drop in occupancy rates has been dominated by business parks – here, occupancy rates dipped by 1.7% over twelve months, to stand at 84.4%. However, warehouses have been an exception to the pattern, as the new lew lian condo occupancy rates actually increased by 2.1% to 92.5%. They are thought to have been buoyed by demand from online consumers.
According to property experts, cooling policies implemented by the government (in a bid to control prices) are one of the driving forces behind these sluggish figures for rents at serangoon condo near nex shopping centre.
From a wider perspective, it seems that decreasing exports and a lack of orders from the key trading entities in Singapore, on top of headwinds within the manufacturing industries (the result of a stronger currency, but a weaker economy overall), has damaged the industrial space market at serangoon.
There are some property experts who point the finger at a sluggish economic recovery and the expectation of interest rate hikes. This has caused worry and caution among businesses when it comes to engaging with purchasing and leasing options.
Lew Lian Condo Rents at Serangoon
Whilst city developments condo prices at serangoon have dropped to an attainable level for many – giving more industrialists the opportunity to invest – macroeconomic factors are causing them to exercise great caution. For example, interest rates and the TDSR (total debt servicing ratio model) are inevitably going to impact choices in upper serangoon road condo, because they prevent businesses from lending as much as they perhaps would like.
Plus, there are plenty of manufacturers consolidating or choosing to relocate to more affordable areas once their current leases have finished.
The government wishes to lower the total cost of making good investment decisions. It wants to offer industrialists more leeway and a lot more options in lew lian condo by cdl, particularly as regards manufacturing sites and regions.
According to an analyst, the corporate involvement of SMEs in Singapore has dropped to its lowliest level in three years. Despite the fact that the economy did evade a potentially disastrous downturn, the market is still struggling to get the interest it needs to tackle outside complications.
For industrial property owners, the prospect of a massive increase in supply (due over the coming five quarters) is a concern – around 3.8 million sq metres of industrial space will appear over this period. This is inclusive of 810,000 million sq of factory space.
Serangoon CDL Hong Leong Condo
This figure is significantly greater than the typical yearly supply and demand of approximately 1.6 million sq metres and 1.2 million sq metres over the last three years.
These property owners include industrial real estate investment funds – an increasing number are disclosing their quarterly statistics for this year and have talked about concerns that an increase in supply will add more strain to already falling occupancy rates.
There is a likelihood that a significant degree of multi-use factory space will not be utilised next year; this might lead to elevated vacancy rates.
According to an expert, by the close of 2015, the total factory vacancy figures could rise by 9.8%. Yet, by the close of next year, the CDL Serangoon Condo figures could have risen by around 10.5%, to 11.2%.
If his predictions are to be believed, for the entirety of this year, total industrial prices might fall by 1%, to 1.9%, and rents could drop by 2%, to 2.5%.
Plus, the speed of this dip would likely grow next year, with prices dropping 4.8% and rents dropping 5-10%.