Debated in Parliament on 6 Aug 2024.
Mr Liang Eng Hwa asked the Deputy Prime Minister and Minister for Trade and Industry (a) whether the Ministry can provide an update on the state of occupancy at the Changi Business Park (CBP); (b) whether vacancies at CBP will increase with upcoming new supply of office space, such as the Punggol Digital District; and (c) whether the overall offerings and the attractiveness of the business parks need to be improved to bring in new demand.
As of the first quarter of 2024, the overall occupancy at Changi Business Park (CBP) was 69.6%, lower than the occupancy of 71% in the previous quarter and the average occupancy of 82.4% over the past decade.
The JTC Corporation (JTC) does not expect the upcoming supply of spaces at Punggol Digital District (PDD) to significantly affect vacancies at CBP, as PDD and CBP cater to different industries. CBP's tenants are predominantly financial institutions engaged in back-end support, whereas PDD’s tenants are primarily in emerging technologies, such as cybersecurity, artificial intelligence and robotics, fintech and smart living.
JTC monitors the vacancies of business parks closely. Overall occupancy for business parks remains healthy at 78% as of the first quarter of 2024. While there appears to be lower occupancy in older estates and estates further from the city centre, we do not observe 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.
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