Chart of the Day: Rising demand boosted city fringe business park rents by 1.8% in Q3

Rents for business parks in the rest of the island also rose 1.3% to $3.80 psf pm.

This chart from OCBC Investment Research (OIR) with data from CBRE shows that business park rents in Singapore’s city fringe and the rest of the island have been largely stable following the government’s decentralisation initiatives.

Rents for business parks in the city fringe increased 1.8% QoQ to $5.80 psf per month in Q3 after five consecutive quarters of growth, whilst for those in the rest of the island, rents inched up 1.3% QoQ to $3.80 psf per month.

Mapletree Business City (MBC) is one of the newest business parks in Singapore and comes with Grade A specifications on top of its integrated business hub features and location close to the Central Business District (CBD) core, according to CBRE.

“The typical tenant profile of tenants at MBC is different from those of traditional business parks and is more similar to the tenant profile in the CBD core,” OIR noted in its report.

With regards to supply, OIR highlighted that there is 317,000 sqm of business park supply as of Q4 2018 onwards which represents 14.8% of the current stock.

“However, only 77 sqm and 17 sqm are expected to come on-stream in Q4 2018 and 2019, respectively,” OIR said.