Singapore's industrial rents jumped 4.4% in 3Q

Will there be more property curbs ahead?

According to Credit Suisse, industrial rents were up 4.4% QoQ this quarter (2Q13: -0.1% QoQ), with warehouse rent index rising 4.6% QoQ (2Q13: -2.4%) and factory rent index up 4.4% QoQ (2Q13: 0.1%).

Here's more:

After a slight decline in 2Q13, the industrial price index continued its upward surge, up
2.8% QoQ to 194.4 led by warehouses (up 10.4% QoQ, after a 5.9% decline QoQ in 2Q13). We are concerned about the steep price increase and expect there to be negative headwinds ahead with potentially further measures being imposed in this space to curb a bubble.

Meanwhile, vacancy rates for private business park maintained high at 21.7% and factory vacancies rose from 10.9% to 11.3% this quarter. Warehouse vacancy fell from 7.3% to 6.8% despite 530,000 sq ft of new space added on this quarter.

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