Singapore industrial business park take-up breaches 2024 levels

Net take-up reached 446,000sq ft in Q1.

In a recent report, Savills revealed that there was an increase in net take-up (446,000 sq ft) in Singapore’s industrial property market in Q1/2025, surpassing the annual net take-up of 422,000 sq ft recorded in 2024.

“Apart from some new take-up in the East and West Region, the rise could be due to the partial pre-commitment of the recent completions – Geneo and Punggol Digital District (PDD) Phase 1,” the report noted.

Here’s more from Savills:

The vacancy rate in the North-East Region eased from 100% in Q4/2024 to 74.4% in Q1 as occupiers started to move into their new spaces at PDD. While there has been some leasing activity in Geneo, the vacancy rate in the Central Region rose to 15.3% in Q1 (9.7% in Q4/2024) as tenants take time to transition into their new premises. Hence, the islandwide business park vacancy rate remained high at 24.1% in Q1, up 2.0 ppts from the previous quarter.

As some landlords are more open to offering both incentives and/or flexible with leasing terms, overall rental growth continues to moderate, with the JTC rental index for business park rising at 1.2% QoQ in Q1. Compared with Q4/2024, the monthly rents for Savills’ prime business parks increased at a slower pace of 1.3% to S$6.35 per sq ft.

As for the less prime developments, some landlords with improved occupancy level have raised their rental expectations, thus pushing the monthly rents for Savills’ standard business parks up by 1.7% QoQ to S$4.11 per sq ft in Q1. Some landlords of highspec industrial spaces are also flexible with rental negotiations to keep occupancy level up. As such, rents for high-spec industrial spaces slipped 0.6% QoQ to S$3.90 per sq ft in Q1.