Realion (OrangeTee & ETC) Research has released its “Industrial Market Outlook 2027 – The Big Picture,” forecasting significant trends in Singapore’s industrial sector.
The report identifies a sustained demand for high-specification spaces as industrialists prioritise quality facilities due to technological advancements and sustainability needs. This shift is expected to be driven by the artificial intelligence (AI) boom, which could create new opportunities for specialised properties supporting high-tech manufacturing and semiconductor production.
Older industrial assets face the necessity of enhancement to meet new technological and structural requirements. These enhancements are anticipated to renew interest from industrialists, although some older properties may still attract tenants seeking affordable space.
The report also notes that an additional 12.3 million square feet of gross floor area is expected to be completed in 2027, potentially exerting pressure on the market, particularly on older properties. Despite this, industrial leasing volumes are projected to remain steady, with 12,500 to 15,500 units expected in 2027, similar to the 13,000 to 15,000 transactions forecasted for 2026. Rental growth is anticipated to stabilise between 1% and 3%, whilst prices may see a moderate rise of 2% to 4%.
Realion’s analysis underscores the resilience of Singapore’s industrial market amidst evolving demands and increased supply, highlighting the importance of adapting to technological advancements and market shifts.
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