Colliers has released its Q1 2025 report on Singapore’s industrial market, revealing a continued upward trend in rental indices despite global economic challenges. The JTC All Industrial rental index rose by 0.5% quarter-on-quarter, marking its 18th consecutive quarter of growth. This steady increase is attributed to the resilience of the single-user and business park segments, although overall industrial occupancy remained flat.
The report highlights a 1.5% rise in the price index, reaching its highest level since the fourth quarter of 2015. This growth reflects a 25.1% increase from the last trough in Q3 2020. Nicolas Menville, Executive Director and Head of Singapore-based Industrial Clients at Colliers, noted, “Singapore’s overall value proposition of a proactive government—offering companies incentives and support, efficient infrastructure, and a skilled talent pool—will ensure that it remains an attractive hub for industries.”
Looking ahead, the supply of industrial space is expected to surge, with an average of 1.1 million square metres anticipated annually until the end of 2027. This includes a significant influx of warehouses and single-user factories, which are largely pre-committed. Catherine He, Head of Research at Colliers Singapore, added that the relocation of manufacturing supply chains to Southeast Asia could benefit Singapore, as companies seek to leverage its position as a major re-export hub.
The report underscores the potential for Singapore to strengthen its regional ties and explore alternative markets to mitigate the impact of US tariffs, ensuring the industrial market’s long-term growth.
