_Singapore: Demand for high-specification industrial spaces set to increase in the future

High specification industrial space is set to be the next bright spot as the government and major industrialists explore technology and automation in their day-to-day operations.

September 06, 2017

Singapore’s economy registered a 2.9% growth y-o-y in Q2 2017, with the manufacturing sector leading the increase at a growth rate of 8.1% y-o-y. This was primarily supported by strong global demand for semiconductors and semiconductor-related equipment. The stronger manufacturing outlook is also driving support for high-specification industrial spaces, as industrialists look to more customised spaces to suit their operational needs. Based on Knight Frank Research, monthly gross rents for Q2 2017 average at S$2.0 psf.

Average Monthly Gross Rentals for Conventional Industrial Space by Cluster

^{Source: Knight Frank Research
*Range of rentals is estimated based on the average of minimum and maximum rentals derived.
*Only rents of units on upper floors are included.}

As more industrial plots are released in the H2 2017 IGLS programme, totaling 3.0 million square feet of gross floor area, the overall average rents and prices for leasehold industrial units are expected to compromise further since industrialists are offered more alternatives for industrial spaces.

Full report of "Singapore Industrial Market Q2, 2017" is available here.