2023-01-05-莱坊-Singapore_Industrial_and_Logistics_Market_Update_Q4_2022_2页_689kb

Summary of Industrial Sales and Leasing Performance in Singapore

Overview

Despite a global economic slowdown and increasing uncertainties, Singapore continues to attract high-value-added manufacturing and logistics investments. Industrial sales and leasing saw declines in late 2022, but pipeline projects for pharmaceuticals, semiconductors, and data centers support long-term stability in prices and rents.

Industrial Sales Performance (Exhibit 1)

• Industrial sales in Q4 2022 reached S$715.1 million, the lowest since Q2 2020.
• Total industrial gross floor area (GFA) was 46.7 million square feet.
• Good growth momentum in January-April Q1 2023, with continued focus on high-value industries.
• Sales activity slowed, with median rent increases proportionally influenced by GFA growth.

Industrial Leasing Volume and Rentals (Exhibit 2)

• Industrial tenancies and rental values fluctuated with economic conditions.
• Based on Q4 2022 data, modest increases projected for 2023 general rental growth, but higher increases likely in logistics due to tight supply.
• Less tenancy deals were transacted by companies due to cautious approaches amid economic uncertainties.

Future Outlook

• Pipeline investments remain positive for high-value sectors with strong projected local occupancy and price stability.
• Notable developments include semiconductors plants and data centers, potentially pushing industrial rents up marginally for the year ahead.
• Despite global challenges, investments in sustainable infrastructure support long-term market confidence and growth.