Investors and occupiers in Singapore’s industrial market are increasingly favouring longer-tenure and modern assets, according to Savills Research. Despite a general moderation in industrial activity in the first quarter of 2026, demand for quality assets that offer operational efficiency and supply chain resilience remains strong.
Strata industrial sales in Singapore were subdued in Q1 2026, with transaction volumes dropping 17.5% quarter-on-quarter to 335 deals, marking the lowest level since 2020. However, pricing performance varied significantly by tenure. Freehold industrial properties saw a 2.5% increase in prices to S$876 per square foot, whilst 60-year leasehold assets rose by 1.4% to S$569 per square foot. In contrast, 30-year leasehold assets experienced a slight decline of 0.6% to S$353 per square foot.
Leasing demand was selective, driven by sectors such as supply chain, e-commerce, and advanced manufacturing. Savills’ basket of prime warehouse and logistics assets recorded a 0.4% quarter-on-quarter increase in rents, reflecting resilience in high-quality logistics facilities. However, rents for prime multiple-user factories declined by 1.4%, indicating greater occupier selectivity and pricing sensitivity.
Ashley Swan, Executive Director of Commercial & Industrial at Savills Singapore, noted, “The Singapore industrial market continues to exhibit resilience and overall stability despite global uncertainties.” Alan Cheong, Executive Director of Research & Consultancy, added that the ongoing flight-to-quality trend is expected to persist, with demand increasingly skewed towards modern, well-located, and higher-specification assets.
Looking ahead, Savills anticipates stabilisation in rental growth across most industrial segments, with multiple-user factories and business parks projected to see rental growth between 0% and 2% in 2026.
