Singapore Business Park Rent Up 0.2% In Q2
SINGAPORE – Rents of business parks in the city-state edged up by 0.2 percent in Q2 2022 compared to the previous quarter, but it dipped 0.1 percent on an annual basis, according to JTC’s latest quarterly market report released on Thursday afternoon (Jul 28).
Edmund Tie’s Research Head Lam Chern Woon expects of rents of business parks in the central region to increase by up to 4 percent this year as the office market rebounds and amidst its limited supply pipeline.
During the period under review, the supply of business park space reached about 2.3 million sq m. However, future supply of such premises is merely 0.1 million sq m.
While the occupancy rate of business parks across Singapore slid by 0.5 percentage points from 85.6 percent during the first quarter to 85.1 percent in Q2 022, it was 0.3 percentage points higher from the same period in last year.
“As at end June 2022. around 1.6 million sq m of new industrial space is expected to be completed in the second half of 2022. Of the upcoming supply, single-user factory space makes up about 43 percent, multiple-user factory space makes up 30 percent, while the remaining 27 percent comprises warehouse and business park space,” noted JTC.
“Barring any sharp slowdown in the global economy, demand for industrial space in 2022 is expected to be robust and occupancy relatively stable,” added JTC, the Singapore government agency which oversees industrial properties as well as business parks.