SINGAPORE: JTC Corporation has revised the methodology it uses to compile price and rental indices for industrial property in Singapore, in a move to provide more comprehensive data coverage and introduce greater transparency into the market.
The revisions include expanding the indices’ geographical coverage to the whole of Singapore, from just the central region previously. The indices now also include new property types such as single-user factories and business parks, as opposed to just multiple-user factories and warehouses previously.
Additionally, the new methodology takes into account more property attributes that affect prices and rents, such as location, remaining tenure and land zoning.
The indices were last reviewed in the first quarter of 2000.
JTC said the revisions were done to better reflect the current industrial property market landscape, which differs from the past when most multiple-user factories were located in the central region. It added that as more property types come on stream, it is important to ensure that the changes in building attributes and quality are taken into account when computing the indices.
JTC also said the revisions did not affect the broad trends of the market, although the magnitude of change may differ from the previous indices.
These changes were reflected in JTC’s latest industrial property market report published on Thursday (Jan 22), which showed that both overall prices and rentals fell quarter-on-quarter in the last three months of last year by 0.1 and 0.6 per cent, respectively.