Industrial property prices increase by 0.5% in Q3 2024

It was largely driven by the multi-user factory segment.

In the industrial property market, overall prices increased by 0.5% in Q3 2024, following a 1.2% rise in Q2 2024, according to an Edmund Tie report.

This was largely driven by the multi-user factory segment, which saw a 0.7% quarter-on-quarter (QoQ) increase.

Overall rental indices rose by 0.3% QoQ driven by multi-user factory rents, which increased by 1% to $2.09 per square foot (psf). Hi-tech industrial spaces and warehouses remained stable at $3.47 psf and S$1.86 psf, respectively.

The centrally located business parks saw a 1% decline in rental rates to $5.35 psf, holding back the overall industrial rental index.

Island-wide occupancy rates remained steady at 89%, with multi-user factory occupancy tight at 91.6%. However, the warehouse segment declined slightly by 0.2 percentage points.

Business park occupancy rates rose to 78.8% whilst occupancy rates in central region business parks increased to 90.3%.

Meanwhile, suburban parks declined to 64.3% mainly due to the partial completion of the Punggol Digital District.

Looking ahead, as electronics and semiconductor manufacturing output improves, rental rates for multi-user factories are expected to rise. Despite the positive spill-over into the logistics segment, growth may be limited by a significant supply pipeline in 2025.