>

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

By

|

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

How this ex-banker-turned-realtor does things differently

2

Nic & Wes Builders: Transforming houses

3

Frasers Property appoints new CEO of Frasers Hospitality, makes other key executive changes

4

Revised ABSD rules for upgraders, more GLS sites in OCR among PropNex’s Budget 2023 wishlist

5

Four-bedroom unit at St Thomas Suites for sale at $4.65 mil

Follow Us On

Our Sites

Edgeprop.sg (previously known as The Edge Property Singapore) – is the best property portal for home-seekers, buyers, investors and real estate agents alike in Singapore. On EdgeProp, you will be able to find all the latest news and views, informational guides, historical transactions and rental searches, and research data and analysis.

Whether you are looking to buy, sell or rent apartments, condominiums, executive condos, HDB flats, landed houses or commercial properties, we bring you Singapore’s the most comprehensive and up-to-date property news and thousands of listings to facilitate your property decisions.

Make better decisions with our easy-to-use free and paid tools. The Edge Fair Value tool lets users calculate the fair value of a property and find properties below market value in Singapore. Meanwhile, discover all things en bloc, including Singapore en bloc news, trends and our En Bloc Calculator, which helps to determine the probability of a Singapore project being put up for collective sale.

Web Version 3.0.3

Aside from that, EdgeProp also offers a market trend tracker that lets you access historical property data, sales volume and compare how similar properties are selling, a heat map that lets you find out where all Singapore’s most popular property sales locations are, a HDB lease tool that lets you calculate your HDB tenure, an affordability calculator, and a property watch list to track your preferred Singapore property by project or location, as well as new launches.

On the lookout for undervalued property or buying to rent? EdgeProp’s powerful search filters let you personalise your property-seeking experience – whether you are looking for a property near MRT stations, amenities like schools and childcare centres, or a good-value condo with a sea view – so that you find exactly what you are looking for.

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

Related Articles