>

>

Savills: Industrial leasing volume climbs 6.1% to 3,298 tenancies in 2Q2023

By Nur Hikmah Md Ali

/ EdgeProp Singapore |

September 18, 2023 4:18 PM SGT

Connexis at Fusionopolis located at the one-north business park (Photo: Savills Singapore).

Join our Telegram channel and follow our Facebook for the latest update.

SINGAPORE (EDGEPROP) - Leasing volume in the industrial market rose to 3,298 tenancies in 2Q2023, up 6.1% y-o-y, according to a Savills Research report. In a press release on Sept 18, Savills Singapore says that the increase was due to more tenancies signed for multiple-user factory spaces, which went up 10.6% y-o-y and is the highest since 2021. However, leasing transactions for single-use factory and warehouse segments fell by 5.7% and 1.3% y-o-y, respectively.

Based on a basket of industrial properties tracked by Savills, the prices for 30-year and 60-year leasehold industrial properties increased by 1.4% and 2.4% q-o-q to $320 psf and $495 psf, respectively.

The report expects further growth in prices and rents for the rest of the year in most industrial property types despite escalating headwinds and subdued growth in the manufacturing sector. Demand for multiple-user factories is likely driven by new growth areas, such as high-value manufacturing industries, while rents are forecasted to increase by 4% to 6%.

Read also: Singapore leaps to sixth place on Savills’ Resilient Cities Index

Rents for warehouses are also expected to grow by 3% to 5% due to the strong demand for modern and high-specification logistics spaces and the limited supply of quality warehouses.

Alan Cheong, Savills Singapore’s executive director for research and consultancy, notes that both rents and prices for industrial and warehouses should continue to rise for the rest of the year. “One factor keeping these two afloat is inflation. The other is higher interest rates. As most landlords are financially strong, it puts them in better stead to pass their higher interest expenses to tenants,” Cheong adds.

Check out the latest listings for Industrial Real Estate properties

Tags:

Follow Us

Follow our channels to receive property news updates 24/7 round the clock.

Subscribe to our newsletter

Top Articles

1

Far East Shopping Centre’s $908 mil en bloc deal aborted

2

World’s largest Mercure Hotel opens on Club Street

3

Grandson of Genting Group founder leads Cover Projects, carves niche in Singapore’s heritage properties

4

The Residences at W Singapore Sentosa Cove relaunches at prices from $1,648 psf, 40% below the peak

5

Residential transactions with contracts dated March 26 to April 2 [DONE DEALS]

Our Site

Follow Us

Property Research

Condos

HDBs

Landed

Commercial

Industrial

Properties For Sale

Properties For Rent

Edgeprop.sg (previously known as The Edge Property Singapore) is the best property portal for real estate agents, investors, home-seekers and sellers alike in Singapore. On EdgeProp, you will be able to find the latest and hottest property news, property listings, and access tools for your research and analysis.

Whether you are looking to buy, sell or rent apartments, condominiums, executive condos, HDBs, landed houses, commercial properties or industrial properties, we bring you Singapore’s most comprehensive and up-to-date property news and thousands of listings to facilitate your property decisions. Click into any listing to check out the new AI Redesign tool to envision your property based on your preferred style, be it Scandinavian, Minimalist or many others.

Make data-driven property decisions with our easy-to-use free and paid tools. The Edge Fair Value tool lets users calculate the fair value of a property, while the En Bloc Calculator helps to determine the probability of a Singapore project being put up for collective sale. Our whole new Research tool provides you data on past transactions, price trends, and more for condos, HDBs, landed houses, commercial properties and industrial properties.

Aside from that, EdgeProp also offers a market trends tracker that lets you access historical property data, sales volume and compare how similar properties are selling, a heatmap that shows you where Singapore’s most popular property sales locations are, a HDB lease tool to calculate your HDB tenure, an affordability calculator, and property alerts to track your preferred Singapore property by project or location, as well as information on new launches.

On the lookout for undervalued property or looking to rent? EdgeProp’s powerful search filters will let you personalise your property-seeking experience – whether you are looking for a property near MRT stations, amenities like schools, or within a HDB Estate or District – so that you find exactly what you are looking for.

View More

Close Ad

00:00