Colliers has released its Q2 2025 Industrial Report, revealing that Singapore’s industrial real estate sector continues to demonstrate resilience despite global uncertainties and an increase in supply. The JTC All Industrial rental index rose by 0.7% quarter-on-quarter, reaching its highest level since Q2 1996, and marking a 24.6% increase since its Q3 2020 low.
The report highlights that rental growth was positive across all segments, particularly in multiple-user factories and business parks. However, overall industrial occupancy dipped slightly to 88.8%, primarily due to a 1.7% decline in the warehouse segment. The price index also saw a 1.4% quarterly increase, slightly slower than the previous quarter, yet achieving its highest level since Q4 2015.
Despite the challenges, Singapore’s position as a neutral and efficient logistics hub is expected to foster new demand patterns. The supply of industrial space is projected to increase significantly, with approximately 1.3 million square metres anticipated by the end of 2027, compared to the historical average of 0.9 million square metres annually.
Nicolas Menville, Executive Director and Head of Singapore-based Industrial Clients at Colliers, stated, “With careful calibration of supply and a strong reputation as a trusted regional hub, Singapore is well-positioned to capture long-term demand from high-value occupiers seeking operational stability and supply chain efficiency.”
Looking ahead, rental growth is expected to moderate due to cautious market sentiment and potential new tariffs on key exports. However, opportunities may arise in specialised logistics and high-tech industrial formats, according to Catherine He, Head of Research at Colliers Singapore.
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