Singapore prime business park rents inch up 0.7% in Q2

The vacancy rate was at 14.9%.

The islandwide vacancy level for business park space in Singapore rose by 0.5 of a ppt QoQ to 14.9% in Q2/2022, a reversal of the 1.1 ppt QoQ decline in the previous quarter. 

Savills says while vacancy rate in the Central and East Planning Region remained relatively flat from Q1, the completion of CleanTech Three led to an increase in vacancy rate in the West Planning Region to 29.9%, the highest since Q4/2004. 

Here’s more from Savills:

Owing to the scarcity and steady demand in Mapletree Business City and one-north regions, Savills’ prime business park monthly rents continued trending up in Q2, rising by 0.7% QoQ to S$5.93 per sq ft. Savills’ standard business park properties monthly rents also increased by 0.7% QoQ to S$4.03 per sq ft as some of the landlords at Science Park started to raise their rental expectations. 

Some of the more accessible high specs industrial developments in prime locations also saw an uptick in their rents in Q2/2022. Some firms do not mind a slight rental premium for the accessibility and convenience of the location. As such, the average monthly rent for Savills’ high-specs industrial basket increased by 1.1% QoQ to S$3.61 per sq ft in Q2/2022.