Page 46 - 12Mar_Sabana AR 2011 Cover.pdf, page 1 @ Preflight ( 12Mar_S

SABANA SHARI’AH COMPLIANT REIT
Since the 2009 economic crisis which saw a drop in
occupancy of private warehouse space to 89.9%,
occupancy levels have since rebounded to 94.3% in
2011, surpassing the previous peak of 92.7% in 2008
(Figure 1.12).
Figure 1.12
Annual Supply, Demand and Occupancy of Island-
wide Private Warehouse Space
4.4 Median Rents
Median rents of private warehouse space continued
their rise from 2010, albeit at a slower pace. Private
warehouse median rents increased 13.4% from $1.63
per sq ft in 2010, to $1.85 per sq ft in 2011 (Figure 1.13).
This is a slightly smaller increase as compared with that
of private multiple-user factory median rentals, which
increased 16.2% in 2011.
Figure 1.13
Median Rents of Private Warehouse Space
Source: URA, DTZ Consulting, February 2012
4.5 Median Prices
Median prices for private warehouse space continued to
increase at an increasing rate, rising 28.0% in 2011 to
$636 per sq ft, compared to 2010’s increase of 23.7%
to $497 per sq ft per month (Figure 1.14). This is in line
with the strong demand and occupancy levels seen in
Figure 1.11, and is contributed in part from Singapore’s
role as a regional logistics hub.
Figure 1.14
Median Prices of Private Warehouse Space
Source: URA, DTZ Consulting, February 2012
5.0 Outlook
The outcome of the global economy for 2012 is
uncertain with the Eurozone debt crisis still unresolved.
As the global economy loses momentum, Asian
economies, including Singapore, will be affected. With
Singapore’s economy heavily dependent on trade, a
Eurozone recession will reduce Singapore’s exports to
Europe and consequently industrial production, and
this will impact GDP.
In addition, with the introduction of new conditions to
some sites in the industrial GLS program which took
effect on 1 January 2012, it signals that the government
is concerned about increasing occupancy costs for
industrialists. This will ensure that future industrial space
will be used according to their intended purposes,
resulting in sustainable growth in rents and prices.
With a survey from the Economic Development Board
indicating that manufacturers are becoming more
cautious, coupled with a weaker GDP growth in 2012, it
is likely that rents and prices of the private multiple-user
factory segment will be affected.
2.00
1.80
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
30
25
20
15
10
5
0
-5
-10
-15
-20
$ per sq ft per month %
URA Median Rent of Private Warehouse
Space (LHS)
% y-o-y change (RHS)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
700
600
500
400
300
200
100
0
30
20
10
0
-10
-20
-30
$ per sq ft %
URA Median Price of Private Warehouse
Space (LHS)
% y-o-y change (RHS)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Independent Market Study
by DTZ Debenham Tie Leung (SEA) Pte Ltd
6,000
5,000
4,000
3,000
2,000
1,000
0
’000 sq ft (NLA)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Annual Supply (LHS)
Annual Demand (LHS)
Occupancy (RHS)
Average Annual Demand between 2002 and 2011: 2.2 million sq ft
Average Annual Supply between 2002 and 2011: 1.9 million sq ft
96
94
92
90
88
86
84
82
80
%
Source: URA, DTZ Consulting, February 2012
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