Singapore’s industrial sector experienced a notable upswing in Q2 2025, with total leasing volume rising 7.6% year-on-year to 3,360 tenancies, marking the highest level since Q3 2021, according to Savills Singapore. This growth comes amidst a backdrop of fluctuating trade policies and ongoing negotiations between regional governments and the US.
The report by Savills highlighted a mixed performance in rental prices across different segments. Monthly rents for prime multiple-user factories decreased by 1.4% quarter-on-quarter to $2.26 per square foot, whilst prime warehouse and logistics properties saw a 4.3% increase to $1.76 per square foot. Strata industrial sales also showed signs of recovery, with a 4.2% rise in transactions to 393.
Property prices for 30- and 60-year leasehold properties continued their upward trend, increasing by 2.0% and 3.5% quarter-on-quarter, respectively. Freehold property prices rebounded with a 2.3% rise to $850 per square foot. Business park rents also climbed, with prime business parks increasing by 0.7% to $6.40 per square foot, and standard business parks rising by 0.4% to $4.13 per square foot.
Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, noted the uncertainty surrounding US tariff policies, stating, “As the bedrock of trade flows gives way to shifting sands, business decisions are in stasis until US tariff policies firm up.” Despite these uncertainties, the expected tapering of factory and warehouse space supply in the second half of 2025 may help stabilise vacancy rates and support rental growth.
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