Singapore’s industrial sector continues to demonstrate resilience, with rents and prices experiencing moderate growth in Q2 2025, according to Cushman & Wakefield’s analysis of JTC’s Quarterly Market Report. The Purchasing Managers’ Index rose to 50 in June, indicating a return to expansion after months of contraction. This suggests a cautious recovery in manufacturing sentiments, despite ongoing uncertainties.
Overall industrial rents increased by 0.7% quarter-on-quarter (qoq) in Q2 2025, marking the 19th consecutive quarter of growth. This was supported by steady asking rents in new developments, driven by higher construction costs. Meanwhile, owners of older properties have shown flexibility in rents to maintain high occupancy rates. Business parks recorded the strongest rental growth at 1.2% qoq, followed by multiple-user factories at 0.9% qoq.
Vacancy rates rose slightly by 0.2 percentage points to 11.2% in Q2 2025, with warehouses and multiple-user factories experiencing higher vacancies due to increased supply. Notable completions include JTC Space @ Ang Mo Kio and Mapletree Joo Koon Logistics Hub. Despite this, new multi-user prime logistics spaces have seen steady take-up rates, reflecting tenant interest in quality spaces.
Industrial prices rose by 1.4% qoq, marking the fifth consecutive quarter of increase. Transaction volumes also increased by 7.1% qoq to 435 transactions, with investors showing keen interest in new economy assets like data centres and life science facilities. The industrial enbloc market has seen a resurgence, with two successful deals in H1 2025, highlighting investor interest in freehold sites with potential for long-term appreciation.
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