These are industrial space of 20,000 square foot or more. In terms of rent for landed warehouses or 100,000 square foot or more, Singapore's ranking worldwide remains constant at No 12 across the 139 cities as of the second half of 2009.
Tokyo ranked top in both categories while London and Oslo were in the top five. A decline in rental rates in larger cities like Seoul, Sao Paolo and Honolulu has pushed Singapore's ranking higher.
Still, Singapore remains quite competitive as a logistics hub despite the jump in ranking, said Mr Suan Teck Kin, a United Overseas Bank economist. "I don't think Singapore's warehouse rent is still a key issue yet," he said.
Rental rates in Singapore have only slightly increased from US$1.03 ($1.44) to US$1.07 per sq ft per month, he said. While in Hong Kong, the rent has jumped from US$1.28 to US$1.51 per sq ft per month.
"To maintain its competitive edge, Singapore should ensure that it will provide value-added services for multinational companies to consider locating their operations here," said Mr David Cohen, director of Asian Economic Forecasting at Action Economics.
- TODAY, 31 March 2010
