Singapore’s industrial real estate market showed stability in Q3 2025, according to Knight Frank Singapore’s latest report. Despite a challenging global environment, industrial asset values remained resilient, attracting both investors and owner-occupiers seeking quality opportunities. Calvin Yeo, Head of Occupier Strategy and Solutions at Knight Frank Singapore, noted the increased activity in the market as stakeholders aim to navigate global uncertainties.
The report highlighted a 5.7% quarterly decrease in industrial tenancies, with 3,168 leases recorded. Total industrial sales amounted to $1.1b (S$1.5b), marking a 34.1% quarterly decline. Manufacturing output also faced challenges, with a 7.8% year-on-year decrease in August 2025, although sectors like transport engineering and chemicals showed growth.
Notable transactions included the sale of a data centre for $258m (S$354m) and the acquisition of multiple properties by an EZA Hill-led consortium for $240m (S$329m). Despite a 9.2% drop in sales volume, easing interest rates have made more industrial properties attractive to investors.
The aerospace and logistics sectors continue to expand, driven by increased air travel accessibility and the development of Tuas Port. ST Engineering’s new facility in Paya Lebar and PSA Singapore’s collaboration with Cosco at Tuas Port are set to bolster these industries.
Looking ahead, Knight Frank anticipates stable industrial real estate indicators into early 2026, with investor interest in high-quality assets expected to remain robust. Factory values are projected to grow between 3% and 5% for the full year.
