Demand for logistics space in the Asia-Pacific region has shown resilience in the first half of 2026, driven by manufacturing, e-commerce, and specialised technology supply chains, according to Knight Frank’s latest report. Rental growth increased by 1.2% over the period, with 15 of 18 markets experiencing stable or rising rents. Businesses are now focusing on operational efficiency and securing high-quality facilities to meet evolving supply chain needs.
Brisbane recorded the strongest rental growth, with a 10.4% year-on-year increase, bolstered by significant investments such as Amazon Australia’s A$750m robotics fulfilment centre. Meanwhile, India remains a key market due to manufacturing expansion and domestic consumption growth. Southeast Asia, particularly Vietnam, benefits from electronics manufacturing and logistics demand.
Singapore continues to be a stable logistics hub, with prime logistics rents rising 6.8% year-on-year. The city-state’s strategic connectivity and trade infrastructure support its role as a regional distribution gateway. Recent investments, like Maersk’s fully automated World Gateway II distribution centre, highlight Singapore’s importance in the supply chain network.
Looking forward, occupiers are expected to prioritise flexibility and quality in their logistics decisions. Tim Armstrong of Knight Frank noted, “The Asia-Pacific logistics market has moved into a more mature phase, where occupiers focus on the type of spaces they occupy.” Christine Li added that AI is emerging as a key driver of logistics demand, with significant investments expected by 2030. This trend is exemplified by DHL’s expansion in data-centre logistics across Asia-Pacific.
