Singapore’s industrial property market continues to show resilience, with the JTC All Industrial Rental Index rising by 0.5% quarter-on-quarter (q-o-q) in Q3 2025, marking the 20th consecutive quarter of rental increases. According to CBRE Research, led by Tricia Song, the warehouse segment saw a notable 0.9% q-o-q rent increase, driven by strong demand from third-party logistics firms and a rise in occupancy to 89.6%.
The single-user factory segment experienced a 0.7% q-o-q rent increase, with occupancy slightly up to 89.1%. Meanwhile, multi-user factories saw a more modest 0.4% q-o-q rent rise, with occupancy remaining stable. The business park segment, however, recorded a 0.2% q-o-q dip in rents, reflecting a two-tiered market where newer facilities in City Fringe locations outperformed older assets.
On the pricing front, the JTC All-Industrial Price Index increased by 0.6% q-o-q, with single-user factory prices rising by 2.1%. The financing landscape in Singapore, characterised by ample liquidity and falling interest rates, has bolstered investor sentiment, making industrial real estate an attractive investment.
Looking ahead, Singapore’s GDP grew by 1.3% q-o-q in Q3 2025, with the manufacturing sector showing signs of recovery. The demand for prime logistics space is expected to remain strong, with modern ramp-up facilities likely to see further rent increases. CBRE Research notes interest in the Johor-Singapore Special Economic Zone as a cost-saving alternative for some occupiers.
