Singapore Business Park Rent Up 0.7% In Q2
SINGAPORE – Rents of standard business park and prime business park tracked by Savills here both edged up by 0.7 percent during the 2nd quarter compared to the previous 3-month period, according to a new report published by the real estate consultancy on Tuesday afternoon (16 August, SGT).
The monthly rent of standard business park space in Singapore reached S$4.03 psf, while that for prime business park hit S$5.93 psf. The data for the latter is based on business park-zoned spaces in the newer clusters that measure from 1,000 sq ft to 5,000 sq ft, with an average monthly asking rent of at least S$5.50 psf.
The uptrend in prime business park rent is due to the scarcity and steady demand in one-north and Mapletree Business City, while some of the landlords at Science Park began to raise their rental expectations and this led to an increase in standard business park rent.
Aside from that, the report from Savills showed that the overall vacancy rate for Singapore business park space rose marginally by 0.5 percentage point (ppt) quarter-on-quarter to 14.9 percent in Q2 2022, reversing the 1.1 ppt quarter-on-quarter dip in the preceding quarter.
“While vacancy rate in the Central and East Planning Region remained relatively flat from Q1, the
completion of CleanTech Three led to an increase in vacancy rate in the West Planning Region to 29.9 percent, the highest since Q4 2004,” added the real estate consultancy.