>

Singapore strata industrial transactions up 28% in 2Q2022: Savills

August 16, 2022 3:34 PM SGT

The increase in sales activity was led by transactions of multiple-user factory deals which climbed 25.3% q-o-q to 475 deals.

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

SINGAPORE (EDGEPROP) - According to an industrial real estate market report by Savills Singapore, the local strata industrial sales activity last quarter jumped 28% q-o-q to a total of 512 transactions. This is the highest q-o-q increase since 3Q2014, the consultancy says.

The increase in sales activity was led by transactions of multiple-user factory deals which climbed 25.3% q-o-q to 475 deals. Savills says that most of the transactions occurred at two industrial developments — West Connect Building and Mega@Woodlands.

“Transactions in this sector are likely backed by local SMEs that acquired ramp-up facilities with modern specifications and reasonable remaining tenures for their own business operations,” says Savills.

The consultancy says that a domestic injection of investment into the sector is likely if the external economy slows, as local investors and owners create demand for prime multiple-industrial spaces and allow for greater capacity to accommodate new work orders.

Savills expects rents for multiple-user factory spaces to increase between 10% and 12% y-o-y for the whole of 2022.

Elsewhere in the industrial market, prime business park monthly rents continued their upward trend, rising 0.7% q-o-q in 2Q2022 to reach $5.93 psf. This is based on a basket of business park-zoned spaces monitored by Savills.

The report attributes the upward trend to the scarcity and steady demand for business parks, especially in Mapletree Business City, one-north, and the Labrador prime industrial locations.

“The industrial and logistics market remains one of the most resilient sub-asset classes across the real estate market,” says Alan Cheong, executive head of research, Singapore.

Although a slowdown in economic activity in 2H2022 was expected to drag down industrial rents, SMEs’ need to stock up motivated them to take on more space instead, thus supporting rents, says Cheong.

Tags:

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

Subscribe to our newsletter

Top Articles

1

Sapphire Windows’ Liews: Beyond providing a room with a view

2

Keeping cool in an east-west-facing house with modern glass windows

3

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

4

Luxury living in the new heart of Bukit Timah

5

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

Our Site

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.