Singapore Business Park Occupancy Fell In Q4 2022

Office Finder Team

January 27, 2023

Singapore

SINGAPORE – In terms of occupancy level, the business park segment was the worst performing among industrial property types during the last quarter of 2022, according to JTC’s latest quarterly market report that was published on Thursday afternoon (26 January, SGT).

The occupancy rate of business park space fell to 82.5 percent in Q4 2022, down from 85.2 percent in the preceding quarter and 84.5 percent during the same period in 2021.

Apart from being lower than the occupancy level of warehouses as well as single-user and multiple-user factory spaces, it was also lower than the overall industrial property occupancy rate, which slid from 89.7 percent in Q3 2022 to 89.4 percent during the period under review.

Nevertheless, the overall rent of business park space in Singapore edged up by 1.0 percent on a quarterly basis and 2 percent year-on-year in Q4 2022. In comparison, the overall rent of industrial properties here rose by 2.1 percent quarter-on-quarter and 6.9 percent on an annual basis.

As for the supply of business park space, it increased to 2.38 million sq m in Q4 2022, up from 2.29 million sq m in the previous quarter. In Q3 2022, 1.95 million sq m of business park space were occupied compared with 1.96 million sq m during the October-to-December period.

Looking ahead, 88,000 sq m of business park space are expected to be completed in 2023, 308,000 sq m in 2024, and 69,000 sq m by 2025.

Meanwhile, The Business Times reported on Thursday afternoon that Edmund Tie’s Research Head Lam Chern Woon remains upbeat on the warehouse and high-tech segments. He thinks that their growth will continue to be driven by a focus on supply chain resilience, amidst heightened stockpiling requirements and protracted supply chain disruptions.

“Recent continued investment commitment by global heavyweights… attest to Singapore’s status as an attractive regional hub for high-value manufacturing and research and development innovation, amid economic uncertainties and competition,” he added.