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ANNUAL REPORT 2011 41
Figure 1.8
Median Prices for Private Multiple-user Factory
Space
Source: URA, DTZ Consulting, February 2012
This could be due in part to the affordability of strata-
titled industrial units compared to residential and office
space in Singapore, leading to increased investor
interest in industrial space as Singapore’s residential
prices continue to rise despite the introduction of the
cooling measures.
3.7 High-tech Industrial Space
High-tech industrial spaces are similar to business parks
in that they have a better corporate image and higher
specifications compared to conventional industrial
space. These improved specifications are usually in,
but not limited, to the following areas:
• Passenger lift capacity;
• Amenities and facilities;
• Air-conditioning system;
• Building automation system;
• Security service; and
• Building finishes.
These specifications may also vary widely across
different high-tech industrial buildings, depending
on their usage and purpose. There is no standard
classification for high-tech industrial space and the
term “high-tech industrial space” is broadly understood
in the market.
High-tech spaces differ from business parks in terms
of geographical setting and zoning. High-tech spaces
are individual buildings, while business parks are areas
zoned as such with stringent planning conditions.
According to DTZ’s proprietary database, there is
approximately 17-18 million sq ft (NLA) of high-tech
industrial space in Singapore as at end-2011. About 2.9
million sq ft (GFA) of high-tech space is scheduled for
completion over the next four years, with completions
peaking in 2014 (1.28 million sq ft) (Figure 1.9).
Figure 1.9 Potential Supply of High-tech Industrial
Space Expected Year of Completion
Source: URA, DTZ Consulting, February 2012
Due to the quality of building specifications and facilities
of high-tech industrial space, they are often used as
data centres, research & development, or back-end
functions. As such, they generally command higher
rent than traditional multiple-user factories. The 75th
percentile median rent of multiple-user factories is
therefore used as a rental proxy for private high-tech
industrial space.
Median rents for high-tech spaces have been on the
increase since 2010, with rents in the East Region
reflecting the strongest performance, increasing 17%
from $2.47 per sq ft per month in 2010, to $2.90 per sq
ft per month in 2011. High-tech industrial space in the
East Region has consistently commanded the highest
rents in Singapore (Figure 1.10).
500
450
400
350
300
250
200
150
100
50
0
40
30
20
10
0
-10
-20
-30
$ per sq ft %
URA Median Price of Private Multiple-User
Factory Space (LHS)
% YOY change (RHS)
2012
1,400
1,200
1,000
800
600
400
200
-
2013 2014 2015
’000 sq ft (GFA)
3.5
3
2.5
2
1.5
1
0.5
0
$ per sq ft per month
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Islandwide
Central Region East Region
North East Region North Region
West Region
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Figure 1.10
Median Rent of Private High-tech Industrial Space
Source: URA, DTZ Consulting, February 2012