Singapore single-user factory Q2 leasing volume at its lowest since 2020

Leasing volume fell by 27.3% YoY to 144 tenancies.

In a report, Savills noted that Singapore’s industrial leasing sector saw a further slowdown in momentum in Q2, with total leasing volume declining by 5.3% YoY to 3,123 tenancies. Other than warehouse spaces which recorded a marginal increase in signed tenancies, leasing demand softened across all segments. 

“Leasing volume for single-user factory spaces fell by 27.3% YoY to 144 tenancies, marking the lowest since 2020. The occupier demand for multiple-user factory spaces remained relatively flat from the same quarter last year,” the report said.

Here’s more from Savills:

Nonetheless, the vacancy rate fell across all segments in Q2, reversing the increase in previous quarters. The vacancy rate for single-user and multiple-user factory spaces eased on the back of higher demand, falling to 12.0% (-0.2 of a percentage point (ppt) QoQ) and 8.7% (-0.8 of a ppt QoQ) respectively. Compared with Q1, the vacancy rate for warehouse spaces also decreased by 0.2 of a ppt to 8.7% in Q2. 

JTC’s industrial rental index continued increasing in Q2, albeit at a slower pace at 1.0% QoQ. While JTC rents for single-user factory also went up at a moderated pace of 1.3% QoQ, those for multiple-user factory rose at a faster pace of 1.5% QoQ in Q2. Savills’ monthly prime industrial rents recorded further growth, with multiple-user factories rents rising by 1.1% QoQ to S$2.26 per sq ft in Q2. 

JTC’s warehouse rental index in Q2/2024 rose by 0.5% QoQ and this closely tallies with Savills’ warehouse and logistics properties rental increase which came in at 0.6% QoQ (to S$1.68 per sq ft).