The industrial sector in Singapore continues to demonstrate resilience, with rents and prices experiencing moderate growth and vacancy rates tightening, according to Cushman & Wakefield’s Q3 2025 report. The purchasing manager index (PMI) reached 50.1 in September, indicating a marginal expansion in manufacturing sentiments. This, coupled with declining interest rates and easing inflation, has contributed to the positive outlook.
Industrial rents increased by 0.5% quarter-on-quarter (qoq) in Q3 2025, marking the 20th consecutive quarter of growth. However, this was a slight moderation from the 0.7% qoq growth seen in Q2 2025. The warehouse segment led the rental growth, rising by 0.9% qoq, driven by sustained demand and limited supply. Meanwhile, single-user factory rents grew by 0.7% qoq, whilst multiple-user factory rents saw a slower growth of 0.4% qoq.
Vacancy rates fell to 10.9%, the lowest since Q4 2022, with single-user factories, warehouses, and business parks recording lower rates. Notable completions in Q3 2025 included the CT Foodnex food factory and major warehouse developments at 15 Benoi Sector and 5 Toh Guan Road East.
Despite a higher supply of single-user factories and warehouses, pre-commitment levels remain strong. Prime logistics developments are in tight supply, with the next major project not expected until 2028. Business park vacancy rates decreased slightly to 23%, with a notable disparity between city-fringe and suburban locations.
Overall, industrial prices grew by 0.6% qoq, marking the sixth consecutive quarter of increase. Whilst transaction volumes declined by 2.2% qoq, they remain above pre-pandemic levels, with investors showing interest in assets with repurposing potential.
