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Cushman & Wakefield Comments on JTC Quarterly Market Report Q3 2023

Xian Yang Wong • 27/10/2023
Overall industrial prices and rents continued to edge up by 1.4% qoq and 2.0% qoq respectively for the 12th consecutive quarter in Q3 2023. In 2023 YTD, industrial prices and rents have risen by 4.4% and 7.1% respectively. This compares to 2022’s whole year price and rent growth performance of 7.5% and 6.5%. While price growth has slowed this year due to a tightened interest rate environment, rents have continued to grow amidst resilient industrial demand and limited supply situation. Nonetheless, market friction is increasing, and rental growth could slow going forward, as tenants are increasingly resistant to rising rents.

Positive rental growth was experienced across the various property types, of which warehouse and multiple-user factory recorded the strongest rental growth of 2.4% qoq and 2.0% qoq respectively in Q3 2023. In comparison, single-user factory and business park rents rose by 1.9% qoq and 1.2% qoq respectively.

Overall industrial vacancy rate rose by 0.2% points to 11.1%, as net supply outweighed net demand. While vacancy rates rose across the board, warehouse vacancy rates fell slightly to 8.7%. Amid tight supply, warehouse demand from logistics players such as third-party logistics (3PL) remains strong. Singapore’s appeal as a key regional supply chain hub has continued to attract global logistics players to expand operations here. For example, global logistics company DSV and Logos have announced a joint $200 million investment in a built-to-suit warehouse facility to be located in Tukang Innovation Drive in Taman Jurong, with expected completion by mid-2025. Net demand was driven by the multiple-user factory and single-user factory segments, though their vacancy rates rose to 10.3% and 11.8% respectively, as net supply outweighed net demand. On the other hand, business park space witnessed negative net absorption and vacancy rates rose to 19.5%.

Amid an economic slowdown, overall industrial leasing enquiries have quietened down in recent months. However, we are sanguine that leasing activities could pick up towards the end of this year alongside an improving manufacturing economy. Singapore Purchasing Managers’ Index (PMI) inched up 0.2 point to 50.1 as it returned to expansionary territory in September. Demand will be driven by flight to quality, with sectors such as biomedical, industrial services and general manufacturing still looking to take up spaces, especially at the eastern and western regions of Singapore.

Industrial volumes (based on caveat data as of 26 Oct 2023) fell by 9.3% qoq to about 401 transactions in Q3 2023. Despite the slight fall in volumes, the industrial market continued to draw investors due to their relatively higher yields and palatable quantum. While Q3 2023 industrial volumes have fallen, it remains higher compared to the quarterly average in 2019 of 309 units.

Recent Press Releases

Cititech-Industrial-Building-CardImg
Prime Freehold Strata Industrial Units for Sale at Cititech Industrial Building and Citilink Warehouse Complex

ERA Realty Network Pte Ltd (ERA), Cushman & Wakefield (NYSE: CWK), and JLL (NYSE: JLL) have been jointly appointed as the exclusive marketing agents for the sale of freehold strata light industrial units at Cititech Industrial Building and Citilink Warehouse Complex. 

Nandhini Rad • 08/04/2024

investment sales singapore 2024
Total investment sales could surpass $25.0b in 2024, higher than $19.2b in 2023

According to Cushman & Wakefield’s latest Marketbeat report, Investment volumes are up by 20.9% yoy.

Nandhini Rad • 08/04/2024

Seletar Mall, Singapore
Cushman & Wakefield and JLL Brokered the Sale of Seletar Mall

Cushman & Wakefield (NYSE: CWK) & JLL (NYSE: JLL), as the joint-exclusive marketing agents, are pleased to announce the sale of 100% interest in Seletar Mall, a dominant suburban retail mall located at 33 Sengkang West Avenue (the “Property”).

Nandhini Rad • 07/03/2024

OneTen-Paya-Lebar
Hwa Hong Corporation Limited successfully sells OneTen Paya Lebar

Cushman & Wakefield (NYSE: CWK) and Savills (NYSE: Savills) are pleased to announce that Hwa Hong Corporation Limited, represented by Cushman & Wakefield and Savills, has successfully completed the sale of OneTen Paya Lebar, a rare freehold city fringe data center located in Paya Lebar.

Nandhini Rad • 06/03/2024

hands with puzzle
Cushman & Wakefield and Nuvama Asset Management launch joint venture real estate office fund, aim to raise USD 360 million

Leading global real estate services firm Cushman & Wakefield [NYSE: CWK] and Nuvama Asset Management, the alternatives-focused asset management arm of Nuvama Wealth Management Ltd (NSE, BSE: NUVAMA), have announced the formation of a new investment entity that will facilitate participation into India’s phenomenal real estate growth story.

Amy Kathleen Kelly • 05/03/2024

Serene Centre Singapore
Prime Freehold Mixed-Use Development Serene Centre Sold for $105 million

Cushman & Wakefield, a leading global real estate services firm has today announced the sale completion of Serene Centre (the “Property”) for $105 million. 

 

Shaun Poh • 23/02/2024

LIV@CHANGI building facade
A Freehold Suburban 3-storey Retail Mall at Upper Changi Road Up for Sale via Expression of Interest

Cushman & Wakefield and CBRE, as the joint-exclusive marketing agents, are pleased to offer for sale Liv@Changi, a 3-storey suburban retail mall located at 933 Upper Changi Road North.

Nandhini Rad • 20/02/2024

Citadines Mount Sophia
Citadines Mount Sophia sold for $148 million

Citadines Mount Sophia at 8 Wilkie Road is a 12-storey premier serviced residence, offering 154 apartment suites comprising studios, 1-bedroom and 2-bedroom. 

Shaun Poh • 02/02/2024

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