Singapore Business Park Occupancy Rises To 84.5% In Q4 2021

SINGAPORE – The overall occupancy rate of business parks across the city-state edged up from 84.3 percent in Q3 2021 to 84.5 percent during the last quarter of 2021, according to the latest quarterly industrial report published by JTC on Thursday afternoon (27 January, SGT).

“In Q4 2021, occupancy rate for the overall industrial property market stood at 90.1 percent. This was unchanged compared to the previous quarter, but 0.2 percentage points higher compared to the previous year,” said Singapore’s state-owned industrial property landlord.

“Delays in completion continue to persist. Total available stock rose by only 11,000 sq m in Q4 2021 compared to the previous quarter, dropping sharply from the quarterly increase of 228,000 sq m in 3Q 2021. For the whole of 2021, total available stock rose by 736,000 sq m. While this was more than double the increase of 357,000 sq m in 2020, it was still less than the increase of 865,000 sq m in 2019 before COVID-19.”

In net floor area terms, the total stock of business park space also reached 2.3 million sq m, and the expected upcoming supply is merely 0.2 million sq m.

However, the rent of such business park space dipped by 0.53 percent quarter-on-quarter in Q4 2021 compared to a 0.27 quarterly uptick in Q3 2021. In comparison, the rents of single-use and multiple-use factories, as well as warehouse space increased quarter-on-quarter during the period under review.

“In line with the broad recovery of the economy, rentals of industrial space continued to rise. In Q4 2021, the rental index of all industrial space rose by 0.2 percent compared to the previous quarter, and 2.0 percent compared to the previous year,” JTC added.