The fall in average prices of multi-user warehouse properties was in tandam with the slowdown in transaction
activity for strata-titled industrial properties in 2014, following recent Government measures such as the
implementation of a SSD on industrial properties in January 2013 and the TDSR framework in late-June 2013,
and generally subdued market sentiment.
AVERAGE PRICES* OF FREEHOLD/999-YEAR LEASEHOLD AND 30-YEAR & 60-YEAR LEASEHOLD MULTI-USER
WAREHOUSE 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 & 60-Yr Leasehold
Freehold/999-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
Some examples of major warehouse investment sales in 2014 are provided in the following table.
Examples of Major Warehouse 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)
5 Gul Lane
5 Gul Lane
30 years
w.e.f. 1 Feb 2011
125,077
(GFA)
$12.3
$98
(GFA)
1 Kallang Place 1 Kallang Place
30 years
w.e.f. 1 Dec 1994
167,253
(GFA)
$12.6
$75
(GFA)
134 Joo Seng
Road
134 Joo Seng Road 30+30 years
w.e.f. 1992
76,424
(GFA)
$13.5
$177
(GFA)
Source: Colliers International Singapore Research
5.5 OUTLOOK
Demand for warehouse space in 2015 is expected to receive continued support from Singapore’s standing as
an important logistics hub in Asia, Asia’s expanding consumer base and the growth of the e-retailing industry,
which would generate more storage, packing and distribution requirements.
With the anticipated moderation in warehouse supply in 2015, of which the majority is expected to be single-
user space and are likely to be almost fully occupied upon completion, the islandwide average occupancy rate
for warehouse space is expected to remain at a healthy level of around 90%.
CAMBRIDGE INDUSTRIAL TRUST | A WINNING FORMULA
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