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Industrial Q1 2022 – In the right direction

Singapore industrial rents and prices see strongest growth since 2013/14


SINGAPORE, MAY 13 2022 - Leading diversified professional services and investment management firm Colliers (NASDAQ and TSX: CIGI) has today released its Industrial Q1 2022 report, a publication that interprets the latest quarterly trends in the Singapore industrial market.

Singapore industrial rents and prices see strong growth 

In Q1 2022, industrial rents continued their sixth consecutive quarter of growth, rising by 1.0% QOQ, the strongest quarterly growth seen since Q3 2013. Correspondingly, industrial prices followed the same upward trajectory, rising by 3.1% QOQ, the strongest quarterly growth seen since Q1 2014. Trade indicators have exhibited a similar trend, with expansion recorded in manufacturing output, NODX and PMI, albeit with growth moderating.
New completions, robust supply pipeline, and border re-openings to provide more options for industrialists

Due to past construction delays, most of the industrial supply pipeline is coming onstream this year, with the majority being factories. In addition to 25.90 mil sf more industrial space scheduled to complete this year, the average annual pipeline supply from present to 2025 at 12.92 mil sf is almost double the 6.46 mil sf over the past three years. This anticipated surge in supply could slow price and rental growth, while providing more options for industrialists at the same time. 

 


2022 Q1 Industrial report_upcoming industrial supply

 
Lynus Pook, Executive Director, Industrial Services, commented: “With the re-opening of Singapore’s borders, industrialists may look to diversify their supply chains and tap on alternative options for cheaper storage; they will also not need to stock up on as many goods as before to tide them through supply chain disruptions.”

Demand for industrial assets, especially high specification warehouses and business parks to be underpinned by growth industries and structural trends.

Nevertheless, demand for industrial assets, especially high specification warehouses and business parks, should still be underpinned by growth industries such as the food, media, logistics, technology and biomedical sectors. Further, the drive for more robust supply chains, the switch to a just-in-case strategy, as well as the increasing digitalisation of industries and the economy should continue to support industrial rent and price growth, albeit at a more measured pace. 

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Media Contact:

Danielle Paterson