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NET allocation of prepared industrial land (PIL) fell in the second quarter after record growth in the previous quarter, while demand for the net allocation of flatted factory space and other segments continued to enjoy strong growth, JTC Corp said.

Singapore's biggest industrial landlord said in a report that the net allocation for PIL fell to 68.8 hectares in Q2 after hitting a decade-high of 126.6 hectares in the previous quarter.

This was due to higher termination of 17.5 ha, up from 1.4 ha in Q1. Year-on-year, net allocation was also down by 8 per cent against 74.8 ha.

On the other hand, net allocation of flatted factory space shot up 564.3 per cent from 1,400 sq m in Q1 to 9,300 sq m. It was helped by higher gross allocation and lower termination.

Termination in the second quarter fell by 23 per cent to 17,800 sq m. The net allocation also saw a 10-fold increase against the 900 sq m registered in the same quarter of the previous year.

Although local companies continue to dominate, taking up 76 per cent of flatted factory space, there was a near three-fold increase in take-up of 3,000 sq m by foreign companies in Q2. The occupancy rate of flatted factory space also increased to 75.5 per cent.

Better gross allocation performance also boosted the net allocation of stack-up factory, by 43 per cent to 16,600 sq m, with occupancy improving by six percentage points to 69.7 per cent.

The net allocation for business park space also grew, from 8,500 sq m to 11,300 sq m, so occupancy rose by four percentage points to 90.6 per cent.

Segments like standard factory and technopreneur space saw a negative growth with figures that were lower than the previous quarter's. The net allocation for standard factory space fell by 43.15 per cent from 19,700 sq m in Q1 to 11,200 sq m.

Technopreneur space's net allocation fell by 16.67 per cent from 600 sq m to 500 sq m. It was due to a higher termination of 600 sq m from 400 sq m in Q1. However, occupancy in that segment went up by 2.2 percentage points to 59 per cent.