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15-02-2025, 10:07 PM
Singapore business parks hit by highest vacancy in 14 years: Savills https://www.businesstimes.com.sg/propert...rs-savills
Singapore Business Parks Face Highest Vacancy in 14 Years: Savills
Source: Business Times, Published: 2025-02-14
Author: Not specified
Article Summary:
Theme: The article reports on the rising vacancy rates in Singapore's business parks, reaching a 14-year high in the last quarter of 2024. It also examines the impact on rental trends and the overall outlook for the sector.
Core Points:
- Vacancy Rates Surge: The overall vacancy rate for business parks in Singapore hit 22.1% in Q4 2024, the highest in 14 years. This is attributed to factors like the completion of the first phase of Punggol Digital District and lukewarm market sentiment.
- Rental Trends: Despite the rising vacancies, rents for business parks continue to increase. JTC's rental index rose by 1.9% year-on-year in Q4 2024, while rents for Savills' prime business parks jumped 6.4% to S$6.27 per square foot (psf).
- Challenges for 2025: Savills expects continued challenges for the industrial sector in 2025, particularly for business parks with higher vacancy rates.
- Outlook: While older business parks might face weaker rents and higher vacancy rates, centrally located ones may hold up. Rents for multiple-user factories are expected to rise by up to 3% this year, while occupancy and rents for pre-committed prime logistics spaces are expected to remain stable. However, new completions of warehouses and business parks could put pressure on rents and occupancy levels, particularly for older developments.
Phenomenon: The article highlights the completion of the first phase of Punggol Digital District as a significant factor contributing to the rise in vacancy rates.
Singapore Business Parks Face Highest Vacancy in 14 Years: Savills
Source: Business Times, Published: 2025-02-14
Author: Not specified
Article Summary:
Theme: The article reports on the rising vacancy rates in Singapore's business parks, reaching a 14-year high in the last quarter of 2024. It also examines the impact on rental trends and the overall outlook for the sector.
Core Points:
- Vacancy Rates Surge: The overall vacancy rate for business parks in Singapore hit 22.1% in Q4 2024, the highest in 14 years. This is attributed to factors like the completion of the first phase of Punggol Digital District and lukewarm market sentiment.
- Rental Trends: Despite the rising vacancies, rents for business parks continue to increase. JTC's rental index rose by 1.9% year-on-year in Q4 2024, while rents for Savills' prime business parks jumped 6.4% to S$6.27 per square foot (psf).
- Challenges for 2025: Savills expects continued challenges for the industrial sector in 2025, particularly for business parks with higher vacancy rates.
- Outlook: While older business parks might face weaker rents and higher vacancy rates, centrally located ones may hold up. Rents for multiple-user factories are expected to rise by up to 3% this year, while occupancy and rents for pre-committed prime logistics spaces are expected to remain stable. However, new completions of warehouses and business parks could put pressure on rents and occupancy levels, particularly for older developments.
Phenomenon: The article highlights the completion of the first phase of Punggol Digital District as a significant factor contributing to the rise in vacancy rates.
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