They expect a “divergent performance” across the industrial sub-sector, elaborating that the bulk of the new supply over the next two years will come from the single-user factory space which is typically developed for industrialists’ own use.
DBS Group Research thinks that the Singapore industrial sector will continue to remain resilient even as supply spikes in the sector, leading to a possible downward pressure on rental rates.
Analysts Dale Lai and Derek Tan say that as more new industrial stock in Singapore has been rolled over to FY2023, they see some downward pressure on rentals for the multi-user factories as well as some of the older industrial stock.
