Singapore industrial market stable with firm demand: analysts

CBRE noted that approximately 2.26 million sq ft is expected in Q4 2025—just 0.4% of total stock.

Singapore’s industrial property market remained stable in the third quarter of 2025, with rents and prices continuing to climb moderately across most sectors.

According to JTC’s Q3 2025 statistics, analysts from Knight Frank, CBRE, and Cushman & Wakefield highlighted ongoing resilience in rental performance, steady demand, and growing investor interest in niche assets.

All-industrial price index rose 0.6% QoQ, with rental growth at 0.5% in the same period. Occupancy improved marginally by 0.3 percentage points to 89.1%.

Knight Frank observed regional disparities in business park occupancy—the Central region held firm at 85.4%, whilst the East and West lagged at 73.0% and 63.1% respectively, suggesting that older suburban stock may need upgrading.

Notable Q3 transactions included the $354m sale of a data centre at 51 Serangoon North Avenue 4, and a $329m portfolio acquisition led by EZA Hill.

CBRE echoed the rental uptick, noting that the JTC All-Industrial Rental Index marked its 20th consecutive quarterly rise—up 25.3% since the Q3 2020 trough.

Prime logistics rents rose 1.1%, reversing a slight dip in the previous quarter. Business parks remained soft, with rents falling 0.2%, although vacancy edged down from 23.3% to 23.0% amid two-tier performance, newer city-fringe assets outperforming older suburban parks.

Cushman & Wakefield similarly reported a 0.5% rise in overall industrial rents, attributing it to firm demand across warehouse (+0.9%), single-user factory (+0.7%), and multi-user factory (+0.4%) segments.

Vacancy declined 0.3 percentage points to 10.9%, the lowest since Q4 2022. The consultancy noted significant new completions, including CT FoodNEX (0.20 million sq ft), 15 Benoi Sector (1.1 million sq ft), and 5 Toh Guan Road East.

Whilst much of the incoming single-user and warehouse supply is already pre-committed, Cushman flagged that prime logistics projects such as Logis Hub @ Clementi won’t be ready until around 2028.

On the macro front, all three firms pointed to manufacturing sector strength, with output rising 6.1% quarter-on-quarter. CBRE added that GDP grew 1.3% in Q3 (seasonally adjusted), and leasing momentum picked up compared to the previous quarter.

Meanwhile, Sheng Siong’s upcoming relocation to Sungei Kadut, along with infrastructure projects like the Tuas Port expansion and ST Engineering’s new MRO facility, are expected to bolster logistics and aerospace demand.

Looking ahead, pipeline supply remains manageable. CBRE noted that approximately 2.26 million sq ft is expected in Q4 2025—just 0.4% of total stock—with no new business park completions slated.

Despite a slight quarterly dip in caveated sales volumes (−2.2% to 451 transactions), Cushman observed that investor interest remains healthy, particularly in adaptive-use opportunities such as self-storage facilities, food factories, dormitories, and data centres.