Singapore industrial sales down 21% to 337 deals in Q1

Despite this, interest based on enquiries remained healthy.

According to Knight Frank, industrial sales activity slowed in the first quarter of 2024 with 337 caveats lodged, a decrease of 21.3% from the previous quarter when 428 caveats were lodged (Exhibit 1). 

However, industrial sales value was similar to the previous quarter at S$709.7 million, a 1.0% increase from the S$702.7 million in the previous quarter. Despite this, a few large industrial deals were successfully transacted during the quarter. 

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For instance, the sale of a data centre named OneTen Paya Lebar to BDx Data Centres from Hwa Hong Corporation Group for S$140.0 million, the sale of a single-user factory located at Senoko Loop for S$53.2 million, and the sale of two industrial properties located at Commonwealth Drive situated within Tanglin Halt Industrial Estate for a total of S$50.6 million, all of which were transacted in February. 

Notwithstanding the slowdown in sales, interest based on enquiries from both end-users and investors remained healthy and could translate into more transactions, especially when interest rates are cut. End-users remain keen on shorter tenure facilities to mitigate their capital costs, while investors are predisposed towards assets with longer tenures. 

In the first quarter of 2024, industrial leasing volume amounted to 2,948 transactions, showing a decline of 6.5% compared to the corresponding period in the previous quarter. However, the value of rental transactions was 9.5% higher at S$28.5 million, as demand for industrial properties remained intact, contributing to the increase in the total value of rental transactions. Islandwide unit rents of industrial properties generally increased in March, as all industrial property types, with the exception of single-user factories, recorded monthly growth.