Occupancy Rates at Business Parks

Mr Saktiandi Supaat asked the Minister for Trade and Industry (a) whether he can provide an update on the trend of vacancy rates at business parks since last year; (b) what is the outlook on the occupation rates at business parks this year; and (c) whether developments in this area reflect concerns about specific sectors of the economy.

As of Q1 2024, the overall vacancy rate of business park space was 22.0%, close to the vacancy rate of 21.6% in the previous quarter. Vacancy rates averaged around 16% over the past decade and was around 20.2% in the previous year. The increase in vacancy rates since last year is mostly due to an increase in supply arising from developments and redevelopments in Science Park, one-north and Cleantech Park, coupled with a slowdown in certain sectors, such as technology. We expect vacancy rates to remain stable/increase slightly in the coming year. JTC monitors the vacancies of business parks closely. While there appears to be increasing vacancies in older estates, we do not see this as a reflection of inherent weakness in any specific sector. JTC will continue working with other agencies to improve the value, appeal and relevance of our business parks, so that they remain attractive to a wide range of occupants.