SINGAPORE (EDGEPROP) - Industrial rents in Singapore climbed 1% q-o-q in 1Q2022, the strongest quarterly growth the segment has seen since 3Q2013. Last quarter’s performance was also the sixth consecutive quarter of growth, according to a market report by Colliers.

Prices in the industrial segment also performed well, climbing 3.1% q-o-q last quarter, and marks the strongest quarterly price growth since 1Q2014. “Due to previous construction delays, most of the industrial supply pipeline is coming onstream this year, with the majority being factories. In addition, 25.90 mil sq ft more industrial space is scheduled to complete this year,” says Colliers.

Over the next three years, the average annual pipeline supply is set to be 12.92 million sq ft, nearly double the 6.46 million sq ft that came online between 2019 to 2022. “This anticipated surge in supply could slow price and rental growth, while providing more options for industrialists at the same time,” the consultancy says.

Looking ahead, industrialists could start looking to diversify their supply chains and tap onto alternative options for cheaper storage, says Lynus Pook, executive director, industrial services at Colliers Singapore. He adds that 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.