Source: URA, Google Earth, JLL Research

The logistics/warehouse segment could benefit significantly from these grand plans.

Demand for logistics/warehouse space is expected to rise with the anticipated growth in air cargo volume; Changi Airport Group expects the expansion of cargo facilities to increase handling capabilities from 3.0 million to 5.4 million tonnes per annum.

Singapore’s future air cargo hub will also be more connected and efficient through data and technology, with a focus on automation. The move towards digitalisation and innovation, including advanced technologies and supply chain processes, will drive demand for higher specification logistics/warehouse premises. This could encourage industrial property owners to upgrade or redevelop their ageing assets in the vicinity.

Developers and logistics service providers could explore opportunities to provide niche logistics/warehouse facilities with temperature control and security features. These would cater to the storage and distribution needs of specialised, time-sensitive cargoes such as pharmaceuticals, perishables and high-value goods that require rapid handling and delivery. Opportunities also exist within the future ALPS2, which will enable logistics service providers to handle time-sensitive goods for redistribution. ALPS2 will allow more logistics companies to establish their operations, including regional distribution centres and freight forwarding activities, further enhancing Changi’s status as a regional air cargo hub.

Singapore’s growth as an aviation hub is also expected to spur the expansion of support services and functions, such as aircraft maintenance, repair, and overhaul (MRO) facilities, catering services, and ground handling units. Besides opportunities within the CEIZ, which is intended for airfreight, air express and MRO activities, there is potential spillover benefits to other parts of Singapore, such as the Seletar Aerospace Park in the north-east and nearby Changi Business Park (CBP).

Potentially, CBP as part of the larger Changi City precinct incorporating the future Changi Urban East District, could become an attractive location for businesses and institutions involved in freight transportation or aviation-related research and development, including artificial intelligence and robotics technology.

It is an opportune time for those seeking opportunities in Singapore’s industrial property market to look east.