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The hike in volume was primarily attributed to the growing demand for single and multiple-user factories.
Leasing volume for warehouse and factory space hit a record high during the second quarter of 2019, rising 6.7 percent year-on-year to 2,833 deals.
The hike in volume was primarily attributed to the growing demand for single and multiple-user factories. Savills revealed that Geylang and Bedok Planning Areas witnessed increased leasing activity in Q2 as compared to the previous quarter, reported Singapore Business Review.
Leasing activity growth for single-user factories corresponded with the positive demand seen for single- and multiple-user factory space during the period under review.
Despite this, supply still managed to outpace demand for single-user factory space, which resulted to vacancy rate increasing by up to 0.3 percentage points quarter-on-quarter to 9.1 percent in Q2.
Vacancy rate for multiple-use factory space also eased by 0.9 percentage point quarter-on-quarter to 12.8 percent, on the back of major completions like the Qualcomm Building in Kallang.
Overall, the rental market continued to be stable in Q2 with average monthly rent for warehouse and factory space unchanged at $1.13 psf, said Savills.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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