SINGAPORE (EDGEPROP) - The median rent of multiple-user factory spaces in Singapore fell by 1.4% q-o-q and 2.2% y-o-y to $1.75 psf per month in 3Q2020, notes Knight Frank in its report on the industrial market.
In July and August, leasing transactions hit 1,577, amounting to $5.7 million, representing a 34.4% y-o-y decline.
Despite the uncertainties, some foreign companies are still expanding operations in Singapore. Zoom Video Communications opened a new data centre in August, while Hyundai Motors has announced plans to occupy the industrial space previously left vacant by Dyson at Bulim Avenue.
As at end-June 2020, some 53.7 million sq ft of industrial space is slated to come on stream from 3Q2020 to 2024, says Knight Frank. About 26.7% of the upcoming developments taking up the industrial space are projected to be completed in the remaining half of 2020, with the majority comprising factory space.
In the manufacturing sector, Knight Frank is bullish on firms that produce electronics, as well as those that manufacture hygiene or health-related products.
Overall, it does not expect industrial rents and prices to decline by more than 5% for the whole of 2020.