Industrial strata sales volume in Singapore more than doubled to 372 in Q3

It’s a reversal from a four-quarter decline which began in Q3 2019.

The uptick was mainly lifted by an uptick in strata sales for multiple-user factory and warehouse properties, such as Mega@Woodlands and Oxley Bizhub. The demand could have come from firms, particularly in printing as well as event organising, who are downsizing their real estate footprint.

Furthermore, Savills notes that some companies in healthcare and the aquaculture industry (i.e. frozen seafood) are also looking to acquire larger facilities to support their business expansion as the pandemic has benefited them. Although there is a growing buying interest among automotive players, especially when there are more single-user factories up for sale, most of them did not translate to actual sales as the prospects are still waiting for better offers before the lease expiry of their current premises.

Here’s more from Savills:

While some owners maintained their price expectations, particularly for freehold assets, data from JTC showed that overall industrial prices fell by 2.2% QoQ in Q3, making it the largest decline in the last four consecutive quarters. Similarly, Savills’ basket of leasehold industrial properties also continued to register declining prices in Q3.

Prices for 60-year leasehold properties fell at a moderate pace of 0.9% QoQ to S$425 per sq ft, while that for 30-year leasehold properties fell by 2.2% QoQ to S$301 per sq ft due to depleting lease terms. As there is a scarcity of freehold industrial stock available currently, especially in prime locations, freehold industrial prices held firm, recording a marginal rise of 0.2% QoQ to S$694 per sq ft.