Page 90 - ar2012

4. Light Industrial/Flatted Factories
4.1 Supply and Demand
As of 4Q 2011, Singapore is estimated to hold an islandwide
stock of 28.9 million sq m 4 of light industrial/conventional
factory space or about 92.5% of all factory space in Singapore.
This was an increase of 3.6% from 27.9 million sq m as of 4Q
2009, following the net new addition of 463,000 sq m in 2010
and 575,000 sq m in 2011.
An estimated 2.2 million sq m5 (net foor area) of new light
industrial/conventional factory space is expected to be
completed between 2012 and 2016. This represents an average
addition of 440,000 sq m of light industrial/conventional factory
space per year, about 15.2% lower than the annual average net
new supply of 519,000 sq m in 2010 and 2011 and approximately
33.6% below the annual average net new demand of
663,000 sq m in the same period.
Net new demand 6 for light industrial/conventional factory
space totalled 547,000 sq m in 2011, following the 780,000
sq m absorption in 2010 on the back of a strong rebound in
Singapore’s manufacturing sector output and economy. As
of 4Q 2011, the average occupancy rate for light industrial/
conventional industrial space remained unchanged at 93.9%
compared to a year ago.
4.2 Rents of Light Industrial/Conventional Multi-User
Factory Space
According to the Urban Redevelopment Authority (“URA”), the
monthly median gross rent for islandwide multi-user space
surged by 16.2% YoY to S$1.91 per sq ft (S$20.56 per sq m) as
of 4Q 2011, after escalating by 11.7% YoY in 2010 as a result of a
pick-up in demand on the back of an economic rebound.
5. Logistics And Distribution Centres
5.1 Supply and Demand
The net addition of some 158,000 sq m of new space in 2011
raised the total warehouse stock to 7.1 million sq m as of
4Q 2011. According to information sourced from the URA
and Colliers International’s market research as of 4Q 2011, a
potential warehouse supply totalling 846,400 sq m7 in net foor
area is expected to be completed between 2012 and 2016. This
translates into an average annual new supply of about 169,300
sq m, 7.2% higher than the 158,000 sq m added in 2011 but 4.4%
less than the 10-year average annual net new supply of 177,000
sq m from 2002 to 2011. This is also 15.9% lower than the annual
average net new demand of 201,300 sq m in the last 10 years.
The Singapore warehouse market has grown from strength to
strength, with thenet newdemand forwarehouse space totalling
347,000 sq m in 2011, almost doubling the net new absorption
level of 180,000 sq m in 2010. With demand outstripping supply,
the occupancy rate for islandwide warehouse space escalated
to 94.3% as of 4Q 2011, a new high since the last peak of 95.5%
in 1995.
2.50
2.00
1.50
1.00
0.50
0.00
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Median Gross Rents of Islandwide Multi-User Factory Space
S$ Per Sq Ft / Month
Source: URA/Colliers International Singapore Research
50
0
100
150
300
200
350
250
400
Source: URA/Colliers International Singapore Research
50
-50
0
100
-100
150
300
200
350
250
400
450
500 96%
94%
92%
90%
88%
86%
84%
82%
80%
Source: URA/Colliers International Singapore Research
INDEPENDENT MARKET STUDY (SINGAPORE)
BY COLLIERS INTERNATIONAL
Net New and Potential Supply of Warehouse Space (as of 4Q 2011)
Islandwide Net New Demand and Occupancy Rate of Warehouse Space
Completed
Upcoming
Net New Demand (‘000 sq m)
Occupancy Rate
Net Floor Area (‘000 sq m)
Net Floor Area (‘000 sq m)
Occupancy Rate
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012F 2013F 2013F 2014F
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
ASCENDAS REAL ESTATE INVESTMENT TRUST
ANNUAL REPORT FY11/12
90