Industrial property prices drop after 4 years

Industrial property prices eased last year after rising for 4 straight years. Rents fell consecutive for 2 years. The current gloomy manufacturing scene and supply glut in the near term should lead to further moderation in prices and rents. Industrial property prices fell 1.5% in Q4 from the preceding quarter, resulting in a full year fall of 1.7%. In the preceding year, the prices rose 3.5% in 2014.  Vacancy rate islandwide rose 0.2% to hit 9.4% in Q4. This is the highest in 3 years. About 2.9 million sqm of industrial space will be ready this year, to be added another 1.6 million sqm next year.  Average annual supply and demand of industrial space were just around 1.7 million sqm and 1.2 million sqm respectively over the past 3 years.

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