Singapore strata industrial sales hit 8-year high in Q2

Sales rose 28% to 512 transactions during the quarter.

According to a report from Savills, strata industrial sales activity in Singapore increased 28.0% QoQ to 512 transactions in Q2/2022, a level not seen since Q3/2014. 

Strata warehouse sales rose by 73.7% QoQ with 33 deals and multiple-user factory sales which rose by 25.3% QoQ to 475 deals. 

Here’s more from Savills:

The sales activity in multiple-user factories was mainly led by resale transactions buildings such as West Connect Building and Mega@Woodlands. This was likely backed by local SMEs that acquired ramp-up facilities with modern specifications and reasonable remaining tenure for their own business operations. 

As there were signs showing price resistance for some industrial buildings with shorter tenure, Savills’ basket of industrial properties showed that prices for 30-year leasehold industrial properties remained flat at S$305 per sq ft in Q2/2022. On the other hand, some 60-year leasehold and freehold industrial properties recorded larger price increases, supporting the overall price growth in Q2. 

From Savills’ basket of industrial properties, 60-year leasehold prices increased by 2.4% QoQ to S$457 per sq ft while that of freehold properties rose by 2.8% QoQ to S$749 per sq ft in Q2/2022.