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However, industrial property prices and rents dropped 1.3% and 0.9% year-on-year, respectively.
Singapore saw industrial property prices and rents increase 0.9% and 0.6%, respectively, in the first quarter of 2021 from the previous quarter, marking two consecutive quarters of positive growth.
On an annual basis, prices and rents still fell 1.3% and 0.9%, respectively.
Rental growth was seen across both the factory and warehouse segments, with rents for single-user factory space rising 0.2% and 0.8% for multiple-user factory space. Rents for warehouse space climbed 0.5%, while business park rents inched up by 0.1%.
In Q1 2021, the overall industrial occupancy rate climbed 0.1 percentage points quarter-on-quarter to 90%.
Among the market segments, multiple-user factory spaces saw occupancy rates increased 0.5 percentage points quarter-on-quarter to 89.0% amid rising demand. However, the single-user factory, warehouse, and business park segments all registered a drop in occupancy rates.
Business parks posted the sharpest decline in occupancy rate at 0.7 percentage points quarter-on-quarter and 0.9 percentage points year-on-year.
As of end-Q1 2021, there was 50.1 million sq m of industrial space.
“For the moment, demand outstrips supply as actual industrial space completions were about 13% or around 1.4 million sq ft, out of an original 10.8 million sq ft that was expected to complete in the first three months of 2021,” said Leonard Tay, Head of Research, Knight Frank Singapore.
“Therefore, when some 25.7 million sq ft of space completes in the remaining nine months of the year, and with single-user and multiple-user factory space making up a 75% majority of completions in 2021, factory price and rental growth will be kept in check for the next 12 months,” he added.
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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg
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