The latest data from JTC’s Q2 2025 statistics highlights a continued upward trend in Singapore’s industrial rental market, with the All Industrial Rental Index rising by 0.7% quarter-on-quarter. This marks the 19th consecutive quarter of rental increases, driven by strong demand across various industrial segments.
Rents in the business park segment saw the most significant growth, increasing by 1.2% quarter-on-quarter, consistent with the previous quarter’s performance. This growth is attributed to newer developments in centralised locations such as one-north and Science Park I, which have seen rental increases. However, older assets continue to face challenges with higher vacancy rates and weaker demand.
The multi-user factory segment experienced a 0.9% rise in rents, accelerating from a 0.3% increase in the previous quarter. This growth is driven by occupiers seeking high-quality facilities and landlord initiatives such as fitted units. Despite this, the occupancy rate decreased slightly to 91.0% due to demand lagging behind supply.
Single-user factory rents rose by 0.4%, with the occupancy rate increasing to 89.0%. Major completions, including Kok Tong Transport and Engineering Works’ factory, contributed to a negative net supply as demolitions removed stock from the market.
Warehouse rents increased by 0.4%, although the occupancy rate fell to 88.8% due to significant completions, including Maersk’s World Gateway 2 facility. The JTC All-Industrial Price Index also rose by 1.4%, with prices increasing faster than rents for the fifth consecutive quarter.
Looking ahead, CBRE Research anticipates cautious business sentiment in H2 2025, with Singapore’s business-friendly environment continuing to attract occupiers. The logistics market may shift towards a landlord-favourable environment by year-end as prime logistics supply moderates.
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