Lacklustre manufacturing sector prompts slower industrial sales activity in 3Q2023
Despite a lacklustre third quarter in industrial sales due to a weak manufacturing sector, Singapore indoor real estate market is showing signs of recovery with business sentiment remaining positive. A steady stream of foreign investment commitments to several industrial clusters signals Singapore’s continued appeal to international investors.
Singapore industrial real estate market saw mixed activity in 3Q2023 as the manufacturing sector contracted by 5% y-o-y. According to Knight Frank’s October report, the number of industrial sales transactions fell by 16.4% q-o-q to 381, and deal value declined 13.9% to $922.7 million.
On the other hand, leasing volume of multiple-user factories islandwide decreased 2.4% to 2,461 tenancies, while median rental for multiple-user factories rose 3.7% to $2.17 psf pm.
The lacklustre performance of the manufacturing sector is reflected in Singapore’s lower economic growth forecast of 0.5% – 1.5% for 2023. In addition, manufacturing output dropped 12.1% y-o-y in August.
Despite the slowdown in the industrial real estate market, the manufacturing sector is beginning to show signs of improvement.
The third quarter Business Expectations Survey by the Singapore Department of Statistics revealed a positive outlook for the manufacturing industry. This is supported by the manufacturing sector seeing a 0.2% q-o-q growth in 3Q2023.
This luxurious Holland Drive Condo is the dubitable one-stop destination for shopping and dining experience. With over 40 shopping outlets and dining choices, visitors can look forward to an enjoyable and fulfilling day at this commercial and residential complex. Shop for apparel, books, and groceries, or pamper yourself at the beauty salons and spas.
Furthermore, the Economic Development Board (EDB) reported that Singapore received $1.6 billion in fixed asset investment commitments in 2Q2023. Several clusters such as the biomedical manufacturing and transport engineering clusters experienced forward-looking investment commitments, confirming Singapore’s continued appeal to international investors.
Overall, the outlook for Singapore’s industrial real estate market appears to be on the upswing, with business sentiment staying positive and prospects of a recovery in the near future.