Singapore Business Park Rents Up 0.3% In Q3
SINGAPORE — Rents of business parks here edged up by 0.3 percent quarter-on-quarter in Q3 2021. Compared to the same period a year ago, rents have marginally increased by 0.4 percent, according to JTC’s latest quarterly market report published on Thursday afternoon (28 October, SGT).
However, the occupancy rate of business parks across Singapore have fallen during the period under review to 84.3 percent, down 0.5 percentage points from the previous quarter and 1.1 percentage points from Q3 2020.
JTC, a state-owned industrial landlord, said the decline in occupancy levels for business parks and single-user factory space came as “supply outpaced new demand”.
During the quarter under review, existing supply of business parks stood at 2.3 million sq m, and expected upcoming supply for such premises for the remainder of the year is just around 0.1 million sq m.
“As at the of end September 2021, around 0.9 million sq m of new industrial space is expected to be completed in the last quarter of 2021. Of the upcoming supply, single-user factory space makes up about 45 percent, multiple-user factory space makes up 39 percent, while the remaining 16 percent comprises warehouse and business park space,” noted JTC.
Looking ahead, the government agency remains bullish on the outlook of Singapore’s overall industrial property market.
“As the economy continues its recovery, the demand for industrial space is projected to increase. Any potential rise in occupancy may however be tempered by new completions, although this increase in supply will depend on the delays in expected completions.”
“Prices and rentals of industrial spaces are likely to remain stable, with positive upsides in the near future if the economy recovers strongly,” JTC added.