Singapore. According to new data by Savills Research, leasing volumes of industrial properties fell 3.5% in Q4 2022 compared to the same period in 2021.
Single and multiple-use factory spaces drove the decline as they decreased by 15.5% and 1.2% compared to 2021. This resulted in a 4.4% decline for the whole year. The last decline was in 2011 when leasing volumes fell 20%.
Not only that, but vacancy levels are also rising. The vacancy for single-use factories increased for the 6th consecutive quarter, recording a 10.9% rise in the fourth quarter of 2022. According to Savills, this may be due to the addition of over 2.73 million square feet of new supply and relocation among industrialists.
More increases were also observed in the East and North East Planning Regions.
For the business park segment, there was a 17.5% rise in vacancy rates. This is the largest record among all industrial property segments.
Despite the increasing lease vacancies, rent prices are still rising for the ninth consecutive quarter. Rentals for multiple-user factory spaces increased 2.6% quarter on quarter, while single-factory space rental increased 1.3% QoQ.
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