Industrial assets with shorter remaining land tenures have outperformed their longer-tenure counterparts, according to SAVILLS Singapore’s latest research. In 2025, prices for 30-year leasehold industrial properties increased by 5.1% year-on-year, a notable rise from the 4.1% growth recorded in 2024. In contrast, freehold properties saw a more modest price increase of 2.4%, whilst 60-year leaseholds rose by 3.9%.
This trend reflects a shift in investor and occupier strategies amidst global uncertainty, rising costs, and evolving supply chain needs. Despite these challenges, leasing activity for factory and warehouse space rose slightly by 1.4% year-on-year, reaching 12,208 transactions, driven by strong warehouse demand. However, total industrial sales transactions fell by 8.2% to 1,611 deals, indicating cautious investment sentiment.
Warehouse leasing volumes reached a record high since 2000, with a 6.9% year-on-year increase to 2,021 transactions, supported by demand for cold storage and modern logistics facilities. Meanwhile, factory leasing remained subdued, with multiple-user factory vacancies rising to 10.1% in the fourth quarter of 2025.
Ashley Swan, Executive Director of Commercial & Industrial at SAVILLS Singapore, noted, “The numbers reflect the overall caution in the market where continued economic uncertainty and rising cost mean that most investors and occupiers take longer and are increasingly prudent when making decisions.”
Looking forward, SAVILLS anticipates that the industrial market will remain resilient, though rental growth is expected to moderate in 2026. Demand is likely to focus on high-specification facilities that enhance operational efficiency.
