Singapore Business Park Rents Up 1.3% In Q2
SINGAPORE – Monthly rents of business parks across the city-state edged up by 1.3 percent quarter-on-quarter in Q2 2023. On a year-on-year basis, business park rents increased by 3.7 percent, according to latest quarterly report published by JTC on Thursday afternoon (27 July, SGT).
However, the overall occupancy rate of business parks in Singapore slid to 80.6 percent at the end of the second quarter from 81.3 percent during the first three months of the year. It was also lower than the 85.1 percent recorded in Q2 2022.
At the end of June 2023, about 6.5 million sq ft of new industrial space is forecasted to be completed for the rest of the year. Of this, business park and multiple-user factory space account for 17 percent of the upcoming supply. On the other hand, warehouse and single-use factory space are expected to respectively make up 22 percent and around 61 percent of the incoming stock.
Looking ahead, JTC projected that demand for industrial space, including business parks, would remain robust despite economic uncertainties. “As new supply continues to come on-stream, occupancy rates are likely to remain relatively stable,” remarked the government agency.
Knight Frank Singapore’s Research Head Leonard Tay agrees. He thinks that industrial rents and prices here would be stable for the rest of the year.
“As a modern, neutral and innovative business hub, Singapore’s fundamentals offer international firms a flight-to-safety and flight-to-quality destination for investment and expansion that will facilitate growth when stability returns to the global economy,” Tay added.