Changi ranked as top logistic micro-market in Singapore: Colliers

SINGAPORE (EDGEPROP) - Changi has come out on top as the most desirable location in Singapore for logistics players, owing to its proximity to Changi Airport. The mature industrial area is ahead of other industrial zones in Tuas and the cluster around Boon Lay/Jurong West, according to a report by Colliers International.
In Changi, available stock in the industrial area is limited and warehouse unit sizes are typically smaller than those in the West region. Total warehouse space in Changi amounts to about 3.7 million sq ft, compared to other areas such as the cluster at Jurong East/Clementi which has a total warehouse stock of 30 million sq ft.
However, there is strong demand for industrial space in Changi from light industries, logistics and third-party logistics operators requiring air transportation. The latter two business segments are the top industrial space occupiers, accounting for about 44% of occupied warehouse space in Singapore. As a result, the vacancy rate in Changi is the lowest among the major logistics locations in Singapore at close to 2.7%, compared to the cluster at Tampines/Paya Lebar at 15.2% or Tuas at 10.5%.
“Singapore has been the location of choice for e-commerce players to establish their footprint when entering the region. The emergence of e-commerce in recent years has had a positive spillover to the 3PL and logistics sector in Singapore,” says Tricia Song, head of research for Singapore at Colliers International.
Other warehouse occupiers in Singapore include the manufacturing sector which takes up 30% of warehouse space; distributors (10%); food, chemicals and pharmaceuticals (6%); oil, marine and energy companies (5%); and IT and technology (5%).
According to the report, regional trade and the growth in e-commerce is likely to translate into stronger warehouse demand in the long term, but greater efficiencies in inventory forecasting and stock...