Singapore industrial sector stands firm as APAC investment falls 36%

Across APAC, Q2 real estate investment fell to US$7.3b, down 36% YoY, pulling H1 volumes 27% lower than the same period in 2024.

Singapore’s industrial property market remained one of the steadiest in the Asia Pacific through the second quarter of 2025, despite a broader regional downturn, according to a report from Savills.

Across APAC, Q2 real estate investment fell to US$7.3b, down 36% YoY, pulling H1 volumes 27% lower than the same period in 2024. International investors turned marginal net sellers of industrial and logistics (I&L) assets—marking their first net exit from the sector in a decade.

The pullback was led by China, where investment dropped to ¥22.4b (US$3.1b) in H1, and Shanghai vacancies climbed to 26.2%. Only Australia, Japan, and South Korea recorded more than US$1b in Q2 investment.

In contrast, Singapore's performance was relatively stable. Prime logistics yields as of end-June stood at 6.50%, with a cash-on-cash yield of 10.9% and a typical loan-to-value of 55%.

The cost of debt remained low at 2.9%, generating a healthy risk premium of 4.3%. Yield figures in Singapore reflect its unique land tenure model, where new industrial sites typically come with 30-year leases.

A standout transaction during the quarter was Brookfield’s $535m (US$413m) acquisition of a Mapletree-owned industrial portfolio—marking the Canadian firm’s first deal in Singapore.

The assets include two R&D-focused business parks and a high-tech industrial complex totaling 167,225 square metres, and traded at a 5.9% net initial yield. The deal is expected to complete in Q3.

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