The JTC All Industrial Rental Index saw a 0.5% quarter-on-quarter rise in Q1 2025, maintaining the momentum from Q4 2024, according to CBRE Research. This marks the 18th consecutive quarter of rental growth, with the index up 23.7% since Q3 2020.
Tricia Song, CBRE Head of Research for Singapore and Southeast Asia, highlighted the business park segment’s notable 1.2% increase, driven by new developments like CapitaLand Group’s Geneo at 1 Science Park Drive.
The business park segment, however, remains divided. Prime locations thrive, whilst older properties face high vacancies, with rates rising from 22.1% in Q4 2024 to 24.1% in Q1 2025. Flexible lease terms and incentives are being offered to attract tenants.
Single-user factory rents rose by 0.8%, with occupancy climbing to 88.6% due to major completions like CIBA Vision’s facility at Tuas South Avenue 3. Despite new completions, the segment experienced a negative net supply of one million square feet, the highest since Q1 2018.
Warehouse rents grew by 0.6%, with major completions including Boustead Trustees’ 36 Tuas Road and DB Schenker’s Red Lion 2. However, occupancy fell to 90.5% as demand lagged supply.
Overall, prices increased by 1.5%, outpacing rent growth for the fourth consecutive quarter. With Singapore’s interest rates declining faster than anticipated, investor sentiment remains positive despite economic uncertainties. Looking ahead, 7.7 million square feet of industrial space is set for completion in 2025, with the warehouse segment accounting for 32% of this supply.
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