Singapore’s industrial property market saw a notable increase in prices during the first quarter of 2026, according to Knight Frank Singapore’s latest commentary on JTC Industrial Statistics. The all-industrial price index rose by 1.2% quarter-on-quarter, significantly outpacing the 0.4% growth in the rental index. This trend is attributed to a series of high-value transactions, including the public listing of UI Boustead REIT and several major acquisitions by CapitaLand Ascendas REIT and Standard Chartered Bank.
The industrial sector’s performance is underpinned by Singapore’s overall economic growth of 4.6% year-on-year, with the manufacturing sector expanding by 5.0%. However, the ongoing Middle East conflict is expected to impact economic activity in the coming months. Despite these challenges, the low interest rate environment is likely to encourage selective investments, with Knight Frank predicting a 3% to 5% increase in industrial property prices for the year.
In the leasing market, occupiers are focusing on business continuity amid volatile energy prices. The biomedical manufacturing sector, a key pillar of Singapore’s economy, is undergoing a recalibration with recent plant closures by BioNTech and MSD. However, significant investments in AI infrastructure and data centres, such as those by Bridge Data Centres and Singtel’s Nxera, highlight continued confidence in the sector.
Knight Frank anticipates industrial rental levels to remain stable, with moderate growth of 1% to 3% expected for 2026. The firm’s Head of Occupier Strategy and Solutions, Tridiana Ong, noted that businesses are reassessing their operational strategies in response to rising energy costs, potentially increasing interest in business park spaces.
