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seen since 2003 1 , significantly
higher than the average net new
supply of 67,000 sqm per annum
from 2003 to 2008.
The private sector owned 78.7% of
the existing supply while the public
sector held a smaller 21.3% share.
Based on available information
from the Urban Redevelopment
Authority (URA) as of 4Q 2009, an
estimated 398,000 sqm 2 (net floor
area) of new business and science
park space are expected to enter
the market between 2010 and 2014.
Averaging 80,000 sqm per annum,
this almost matches the annual net
new supply of 81,000 sqm between
2003 and 2009. The majority 34.8%
of this upcoming supply will be
located in one-north, followed by
the Alexandra precinct (30.4%),
Changi Business Park (29.2%) and
International Business Park (5.6%).
Demand and Occupancy
According to figures from the URA,
some 2,000 sqm of business and
science park space was returned
to the market by occupiers to the
market during the year.
Net new DEMAND AND OCCUPANCY RATE OF BUSINESS AND
SCIENCE PARK SPACE
Net New Demand (‘000 sqm)
160
140
120
100
80
60
40
20
-20
2003 2004 2005 2006 2007 2008 2009
Source: URA/Colliers International Singapore Research
Net New Demand (‘000 sqm) Occupancy Rate (%)
The economic downturn in 2009
had adversely affected demand
for business and science park
space. Apart from space given up
due to companies consolidating
their operations, new take-up was
affected by companies holding
back business expansion plans.
Additionally, spill-over demand for
business and science park space
from qualifying office space users
had also declined as a result of the
narrowing gap between rents of
Grade B office space located at
the fringe of the Central Business
District (CBD) and regional centres
(which had fallen by over 30% in
2009) and those of business and
science park space.
Occupancy Rate
100%
90%
80%
70%
60%
50%
40%
30%
20%
0%
With supply outstripping demand,
this exerted downward pressure on
the average occupancy rate, which
lost 13.0 percentage points during
the year, to 80.8% as of 4Q 2009.
Rents of Business and
Science Park Space
The combination of weak demand
and the rise in vacant stock eroded
rents of business and science park
space in 2009.
According to figures sourced from
the URA, the overall median rents
for business and science park space
declined by 24.2% in the first three
quarters of 2009 and increased by
2.8% in the final quarter to end the
1
Urban Redevelopment Authority (URA)’s statistical series for business park space starts from 3Q 2002.
2
Note that the level of potential supply could increase due to new projects that may be proposed in the next one to two years.
8th Annual Report FY09/10
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