Singapore’s industrial property market was relatively resilient in H1 2020; remodelling of spaces and flexible leases recommended
Factory rents decreased 1.4% HOH to S$1.6 psf, while warehouse rents remained flat and business park rents declined 0.35% HOH to S$4.35 psf. Rents for general factory, business park and high-spec spaces should soften this year before a recovery from 2021.
In 2020, we expect decreasing demand for factory space but a growth for warehouse space, largely led by e-commerce and stockpiling activities. Rising demand for web-enabled services has also driven demand for data centres in Singapore.
While we estimate half of the 15.4 million sq ft expected completions in overall industrial space this year to be delayed, there is still ample supply of 14 million sq ft per annum 2020-2022, before tapering off in 2023.
Download Colliers' bi-annual report on the industrial property market in Singapore for H1 2020, as we analyse the latest shifting trends and market outlook, with expert recommendations for warehouse occupiers and investors.