Singapore industrial sales volume breaches 3-year annual average 

Sales volume reached 1,387 in the first three quarters of 2021.

Strata industrial sales activity in Singapore picked up in Q3, growing 3.7% QoQ to 472. The total number of transactions now reached 1,387 for the first three quarters of 2021, breaching the annual average of 1,206 for the last three years. 

According to Savills, the sales growth could be backed by buyers who are keen to purchase private properties as they do not have to go through stringent application procedures with JTC when buying public industrial properties. Moreover, they are also looking for capital appreciation potential from private property acquisition as these properties generally have longer lease tenures than JTC properties, with some even being freehold. 

Here’s more from Savills:

Sales activity for multiple-user factory and warehouse spaces continued to pick up in Q3, rising by 4.6% and 35.7% QoQ respectively. While demand in the Central and North Planning Region stayed strong, there was an uptick in sales demand for multiple-user factories in the West Planning Region after a decline in the previous quarter. 

For the warehouse segment, most users within the West Planning Region tend to lease as they usually require large ramp-up facilities which are limited in the sales market. As such, the majority of the warehouse sales demand came from the Central Planning Region where smaller warehouse spaces are required for last mile delivery services. 

Interested buyers for single-user factories are still on the lookout, but very few translated into actual sales because of the price gap between buyers and sellers. As such, the sales volume for single-user factory spaces continued to fall by 34.4% QoQ in Q3.