Singapore multiple-user factory rents up 7.3% in Q2

Meanwhile, single-user factory rents grew by 6.2%.

The rental indices for multiple-user/single-user factories have risen by 1.5%/1.3% q-o-q respectively, to come in at 7.3%/6.2% y-o-y, according to Colliers.

Demand at multiple-user factories, especially higher specification spaces, were driven by commitments from small incremental tenants in the biomedical and semiconductor sectors.

Here’s more from Colliers:

For single-user factories, there is over 1 mil sqm of supply coming on stream up till 2025 though these are typically developed by end-users themselves; demand in this segment has been boosted by advanced manufacturing players. Global names such as Shimano, Pall Corp, and AstraZeneca have announced plans to set up facilities. 

Notably, on the back of the electronics cycle upturn, major chip players such as Applied Materials and Vanguard have also increased their commitments here, displaying confidence in Singapore as an advanced manufacturing hub.

However, with overall softer demand and higher supply, rental and price growth for both types are likely to slow going forward.