Industry / Real Estate

Industrial Real Estate (Singapore)

Group Research / February 10, 2017

Photo Credit - AFP

Overall Outlook

We believe that the outlook for Singapore’s industrial sector remains soft and is projected to remain on a decline. Rental rates are expected to edge down by 5-10% per annum over the coming two years, weighed down by a spike in supply completions over 2016 to 2107. Demand for space is expected to lag behind supply growth in the coming years as firms continue to look to consolidate or downsize their space requirements in order to remain cost efficient. Vacancy rates are expected to remain on an uptrend to reach 11% by end-2018.

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Our In-House Experts

Derek TAN
+65 668 23716
derektan@dbs.com

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The information herein is published by DBS Bank Ltd (the “Company”). It is based on information obtained from sources believed to be reliable, but the Company does not make any representation or warranty, express or implied, as to its accuracy, completeness, timeliness or correctness for any particular purpose. Opinions expressed are subject to change without notice. Any recommendation contained herein does not have regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. The information herein is published for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees, who should obtain separate legal or financial advice. The Company, or any of its related companies or any individuals connected with the group accepts no liability for any direct, special, indirect, consequential, incidental damages or any other loss or damages of any kind arising from any use of the information herein (including any error, omission or misstatement herein, negligent or otherwise) or further communication thereof, even if the Company or any other person has been advised of the possibility thereof. The information herein is not to be construed as an offer or a solicitation of an offer to buy or sell any securities, futures, options or other financial instruments or to provide any investment advice or services. The Company and its associates, their directors, officers and/or employees may have positions or other interests in, and may effect transactions in securities mentioned herein and may also perform or seek to perform broking, investment banking and other banking or financial services for these companies. The information herein is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation.

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DBS Bank Ltd
12 Marina Boulevard, Marina Bay Financial Centre Tower 3
Singapore 018982
Tel. 65-6878 8888
Company Regn. No. 196800306E