SINGAPORE INDUSTRIAL PROPERTY MARKET OVERVIEW
Some examples of major en-bloc factory acquisitions by institutional investors in 2014 are provided in the
following table.
Examples of Major Factory Investment Sales in 2014
Project Name
Location
Tenure
Estimated Net
Lettable Area
(sq ft)
Sale Price
(S$ million)
Price
(S$ per sq ft
over NLA)
2A Changi North
Street 2
2A Changi North
Street 2
30+30 years
w.e.f. 16 Aug 2011
67,844
(GFA)
$12.0
$177
(GFA)
39 Senoko Way 39 Senoko Way
30 years + 30 years
w.e.f. 16 Feb 1994
95,250
(GFA)
$18.0
$189
(GFA)
Lek Sun Building 12 Ang Mo Kio
Street 65
30 years
w.e.f. 16 Oct 1990
180,424
(GFA)
$39.8
$221
(GFA)
20 Kian Teck Lane 20 Kian Teck Lane 30 years + 20 years
w.e.f. 1 May 2000
93,767
(GFA)
$22.4
$239
(GFA)
Jackson Square 11 Lorong
3 Toa Payoh
60 years
w.e.f. 16 May 1969
355,265
$80.0
$225
Jackson Design
Hub
29 Tai Seng Street 30 + 30 years
w.e.f. 1 May 2007
85,070
$31.5
$370
Source: Colliers International Singapore Research
4.5 OUTLOOK
The outlook of the factory property segment is expected to be mixed in 2015. With industralists expected to
remain cost sensitive amid supply pressures, rents of multi-tenanted factory developments could experience
some downward pressures.
However, rents for factories with higher building specifications, such as those located within the business parks,
could see some upside potential due mainly to a tightening in supply.
Meanwhile, tenants with larger space needs (e.g. 100,000 sq ft and above) and who require space immediately
may face challenges finding available options. Apart from the limited availability of entire developments for
lease that also meet operational and technical requirements, there are also fewer options after JTC revised
its subletting policy with effect from 1 October 2014. The new policy requires end-user lessees to occupy
minimally 70% of their building compared to 50% previously, thereby leaving less space for subletting.
Over the same year, prices could ease on the back of the anticipated muted state of the strata-titled industrial sales
segment and continued effects of the TDSR requirement. Investment sales activity will continue to be affected by
the generally subdued market sentiment and recent JTC policy changes.
5.0 WAREHOUSE MARKET OVERVIEW
5.1 SUPPLY OF WAREHOUSE SPACE
5.1.1 EXISTING SUPPLY
As of 4Q 2014, the islandwide warehouse stock stood at 90.5 million sq ft, with the majority 98.9% privately owned and
the remaining 1.1% owned by the public sector.
CAMBRIDGE INDUSTRIAL TRUST | ANNUAL REPORT 2014
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