17 Due to the limitation on the type of sales caveat data/information recorded by the URA, analysis can only be carried out for multi-user factory space.
*Note that the average prices are dependent on the number and type of transactions that occur during the quarter/year. This in
turn depends on factors such as the location and age of the building as well as the floor level and size of the unit.
Source: URA REALIS/Colliers International Singapore Research
30-Yr Leasehold
Freehold/999-Yr Leasehold
60-Yr Leasehold
2004
2008
2006
2010
2012
2005
2009
2007
2011
2013 2014
4Q13 1Q14 2Q14 3Q14 4Q14
$0
$100
$200
$300
$400
$700
$500
$800
$600
$900
S$ per sq ft
Statistical Range of Monthly Rents of Islandwide Factory Space
Period
Minimum
(per sq ft)
25th Percentile
(per sq ft)
Median
(per sq ft)
75th Percentile
(per sq ft)
Maximum
(per sq ft)
Business Park
4Q 2013
S$3.15
S$4.00
S$4.49
S$5.25
S$8.70
1Q 2014
S$3.10
S$3.90
S$4.23
S$4.55
S$10.01
2Q 2014
S$2.99
S$3.80
S$4.16
S$4.36
S$6.40
3Q 2014
S$2.86
S$3.80
S$4.00
S$4.33
S$5.60
4Q 2014
S$3.00
S$3.80
S$4.09
S$4.31
S$6.10
Source: URA REALIS/Colliers International Singapore Research
4.4 PRICE
Based on caveat records captured by URA’s REALIS as of 2 February 2015, average prices of 30-year leasehold
multi-user factory space
17
eased for the second consecutive year, by 5.3% YoY to S$307 per sq ft in 2014.
Conversely, prices of properties with longer tenure where supply is comparatively limited held up better. The
average prices of freehold/999-year leasehold multi-user factory space dipped 1.0% YoY in 2014, compared to
the 8.8% YoY rise in 2013, while average prices of 60-year leasehold multi-user factory space continued to rise
but at a slower pace of 2.7% YoY to S$460 per sq ft, compared to 2013’s 5.8% YoY gain.
This can be attributed to the slowdown in demand due to a price gap between buyers and sellers as well as the
continued effects of market measures such as the imposition of a SSD on industrial properties in January 2013
and the TDSR framework in late-June 2013. Additionally, the Government’s move to reduce the maximum tenure
of industrial sites sold under its IGLS programme from 60 to 30 years, and the ramped up IGLS programme in
recent years have resulted in stiffer competition among 30-year leasehold industrial properties, especially after
demand slowed down.
AVERAGE PRICES* OF FREEHOLD AND 30-YEAR AND 60-YEAR LEASEHOLD MULTI-USER FACTORY SPACE
CAMBRIDGE INDUSTRIAL TRUST | A WINNING FORMULA
89
