Singapore strata industrial sales drop 7.1% to 380 transactions in Q3

Blame it on the multiple-user factory segment.

Following a short-lived rebound in Q2, a report from Savills revealed that strata industrial sales activity in Singapore decreased 7.1% QoQ to 380 transactions in Q3. Coupled with protracted weakness in the manufacturing sector, lingering high interest rates and muted global growth are likely to have hindered sales activity. 

Here’s more from Savills:

Even though sales momentum for the warehouse space picked up again (+13.6% QoQ), overall sales were dragged down by the slower sales for multiple-user factory space (-8.8% QoQ). Although there was a marginal transaction volume, the total transaction value for both segments increased implying that demand was centred on larger premises. 

Industrial prices also continued to grow, with the JTC price index rising consecutively since Q2/2021. The Savills’ basket of industrial properties showed that prices grew across all tenure types in Q3, albeit at a moderate pace as buyers turned cautious. Prices for 30- and 60-year leasehold industrial properties increased 0.9% to S$323 per sq ft and 0.6% QoQ to S$499 per sq ft respectively, while that for freehold industrial properties went up 0.8% QoQ to S$803 per sq ft in Q3.