SEO Version
ANNUAL REPORT 2011
45
The high-tech industrial sector is also correlated to
the office market as a result of its high specifications
and substitutability for some office functions. As such,
rents and prices of high-tech spaces are more volatile
than that of multiple-user factory spaces, reflecting its
correlation with the office market. As the office market is
expected to soften in 2012, high-tech rents and prices
will be affected as well.
In terms of the private warehouse sector, demand
for storage is expected to remain strong due to the
establishment of Singapore as a regional logistics hub.
However, the threat of a global recession and a lower
GDP growth forecast for 2012 is likely to impact rent and
price increases. As such, warehouse rents and prices
are likely to see slower declines compared to that of
private multiple-user factories.
Our outlook on the rents and prices of private multiple-
user factories, high-tech industrial space, and private
warehouse spaces for end-2012 are as follows (Table
1.10):
Table 1.10
Outlook on Rents and Prices
Type of Property
% change
end-2012
Private Multiple-user Factory Median
Rents
-8%
Private Multiple-user Factory Prices
-8%
High-tech Industrial Median Rents
-10%
High-tech Industrial Prices
-10%
Private Warehouse Median Rents
-3%
Private Warehouse Prices
-3%
Source: DTZ Consulting, February 2012
Appendix 1 - Planning Regions in Singapore
Source: URA, February 2012
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