
Singapore Q1 industrial sales volume drops to a 5-year low
There were only 351 transactions during the quarter.
According to a Savills report, Singapore’s strata industrial sales activity remained lukewarm in Q1. Although the sales volume fell at a slower rate at 3.8% QoQ (-20.1% QoQ in Q4/2024), it hit a five-year low at 351 transactions in Q1.
Investor sentiment was affected by reconfiguring supply chains and rising business costs, making them defer their expansion plans.
Here’s more from Savills:
Notwithstanding the lacklustre sales momentum, JTC multiple-user factory price index continued to increase, up 1.9% QoQ in Q1. Compared with the preceding quarter, Savills’ basket of 30- and 60-year leasehold property prices also posted stronger growth in Q1, rising 3.3% QoQ to S$348 per sq ft and 1.2% QoQ to S$538 per sq ft respectively.
This could imply that buyers favour assets with a more palatable bite size and fi nancial quantum during this period of economic uncertainty. Consequently, there is more room for price negotiation. On the other hand, prices for freehold properties fell by 0.7% QoQ to S$831 per sq ft in Q1.