SINGAPORE - Industrial property prices staged a comeback in the first quarter after a surprise dip in the preceding three months.
Office and shop prices also rose, which combined with rental declines to drive down yields in the commercial segment.
Prices of industrial property rose 4.5 per cent in January to March from levels in the previous quarter, the Urban Redevelopment Authority said on Friday.
The surge came despite the Government's move to impose a seller's stamp duty on the sector for the first time ever - part of a seventh round of cooling measures that took effect on Jan 12.
Multi-user warehouses saw the sharpest increase as prices shot up 10.6 per cent in the first quarter to hit a new high, partly because of limited supply. The rise exceeded the steep increase of 9.4 per cent already recorded in the fourth quarter of last year.
Multi-user factory prices grew 2.9 per cent in January to March after declining 2.7 per cent quarter-on-quarter in October to December last year.
Another factor pushing up prices was the greater volume of sales for freehold and 999-year leasehold industrial property, said Colliers International's director of research and advisory, Ms Chia Siew Chuin. These properties tend to be more expensive than units on shorter leases.
Commercial property prices also rose in the first quarter, albeit at a slower pace than industrial.
Prices of offices and shops both went up 2.1 per cent in the first quarter, after rising 0.3 per cent and falling 0.2 per cent respectively in the previous quarter.
More investors turned to commercial property after it ended up being the only segment left untouched by the Jan 12 curbs.