New supply lifts Singapore Q1 business park vacancy rate to 23.3%

The Punggol Digital District completion drove the increase.

Business park vacancy in Singapore edged higher in the first quarter of 2026 as new supply entered the market, although rental performance remained resilient, according to Savills.

The consultancy said islandwide business park vacancy rose to 23.3% from 22.9% in the previous quarter, largely due to the completion of new space at Punggol Digital District. Vacancy in the North-East planning region increased by 3.7 percentage points quarter-on-quarter to 45.1%.

Despite the increase, Savills noted that the rise in vacancy was driven primarily by fresh supply rather than a broad weakening in leasing demand. Vacancy in the West planning region declined, while the East planning region recorded a modest increase to 27.7%.

Rental performance remained positive. JTC's business park rental index rose 0.3% quarter-on-quarter, while Savills' standard business park rents increased 0.6% to S$4.14 per sq ft. Prime business park rents outperformed, climbing 4.4% to S$6.73 per sq ft on the back of healthy demand for quality space.

In contrast, high-specification industrial rents softened by 1.0% quarter-on-quarter to S$3.90 per sq ft, reflecting more cautious leasing sentiment in that segment.