Investor Presentaiton
Singapore Industrial Market Outlook
Overall occupancy rate for industrial property market fell to 88.8% as new completions remaining strong in 1Q2023, and
new supply continues to exceed new demand
1
2
3
4
5
Price and rental index of industrial space in 1Q2023 have continued to rise
amidst inflationary pressures. Price and rental increased by 1.5% and 2.8%
respectively as compared to the previous quarter, and 6.9% and 8.8%
respectively compared to the preceding year(1).
Singapore's economic growth is expected to slow to about 0.5% to 2.5% y-
o-y in 2023, from 3.6% y-o-y in 2022. Despite the weaker economic outlook,
industrial rental growth is expected to hold up this year, led by a resilient
demand from 3PL players. The industrial factory sector is expected to see
moderated growth of up to 1.0% in 2023 resulting from manufacturing slow
down, lackluster export performance and higher supply(2).
Due to rising macroeconomic headwinds, occupiers continues to be
cautious towards expansion needs. In the Business Park sector, selected
tech and R&D industries have also given up over 75% shadow space.
Coupled with the expected completion of Elementum in 2023, the rents in
Business Parks are expected to be muted for rest of 2023(3).
Demand for the Warehouse sector is expected to remain resilient, driven by
strong competition for storage space in modern ramp-up developments(2)
and no new completions for the rest of the year.
New economy sectors such as the Logistics and High-Spec Industrial
sectors should continue to outperform despite the moderation in demand,
with rents rising by 3.1% and 7.5% respectively q-o-q as well as forecasted
rent growth to be in high single digit positive range for FY2023.
Net Supply of Industrial Space (1)
Net Supply ('000 sqm)
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
2018
2019
2020
2021
2022
2023F
2024F
2025F
2026F
■Single-user Factory
■Multiple-user Factory ■Warehouse
■Business Park
Industrial Sector
Factory
Warehouse
High-Specs Industrial
Business Park
1Q2023 Market Rents
(S$/psf/pm)
2Q2023 Market Rents
(S$/psf/pm)
1.37-1.75
1.35 1.72
1.34-1.82
2.76(4)-3.73
3.70-6.10(5)
1.37-1.87
2.76(4)-3.73
3.70-6.10(5)
Source: JTC, CBRE
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ESR-LOGOS
REIT
Notes: (1) Based on JTC 1Q2023 Industrial Property Market Statistics. (2) Based on Singapore Market Outlook 2023 by Cushman & Wakefield. (3) Based on Singapore Figures Q2 2023 by
CBRE (4) Based on Management estimates. (5) Rents for Business Park at city fringe.View entire presentation