Demand for traditional industrial spaces may turn tepid in the later half of 2019 amid a slowdown in the manufacturing sector, but AIMS APAC REIT holds an important advantage over its peers in the form of highly developable, but untapped floor area.
According to figures released by Singapore’s Ministry of Trade and Industry (MTI) on 21 May, Singapore’s manufacturing sector contracted by 0.5% year-on-year, and shrank by 7.1% quarter-on-quarter.
This contraction extends the 3.4% decline that was seen in the preceding quarter.
MTI has attributed the declines to output declines amid weak global semiconductor, and semiconductor equipment demand.
This may adversely affect traditional industrial REITs with strong exposures to the precision engineering, and electronic clusters.