Leasing volume for multiple-user factory spaces in Singapore dropped 34.4 per cent on the year to 1,577 transactions in July and August, amounting to S$5.7 million, Knight Frank said on Tuesday.
This comes as strong challenges faced during the Singapore “circuit breaker” period and economic uncertainties continue to subdue substantial movements in the leasing market, the real estate consultancy said in a report.
The median rent of multiple-user factory spaces in Singapore slipped by 1.4 per cent quarter on quarter and 2.2 per cent on the year to S$1.75 per square foot per month in the third quarter, the report noted.
The average price of multiple-user factory space also remained largely stable across most tenure categories in Q3.
Despite looming uncertainties, foreign companies are still looking to expand their Singapore operations, Knight Frank said. In Q3, Zoom Video Communications opened a new data centre, and Hyundai Motors announced plans to occupy the industrial space previously left vacant by Dyson at Bulim Avenue.
About 53.7 million square feet of industrial space in terms of gross floor area is expected to come on stream from Q3 2020 to 2024. Of this space, some 26.7 per cent of the upcoming developments are expected to be completed by 2020, the report noted.
On its outlook, Knight Frank said Singapore will continue to be a favourable destination as a hub for companies worldwide.
Business parks stand as one of the alternative options for cost-conscious qualifying occupiers, as more office users re-strategise their space requirements, given that more people are working from home, Knight Frank said.