Singapore’s industrial sector continues to show resilience, with the JTC All Industrial rental index marking its 19th consecutive quarter of growth in Q2 2025. According to Colliers, the index has surged by 24.6% since its last low in Q3 2020, reaching its highest point since Q2 1996. The rental index increased by 0.7% quarter-on-quarter, up from 0.5% in the previous quarter.
The growth was primarily driven by the multiple-user factory and business park segments. However, overall industrial occupancy slightly declined to 88.8%, down from 89.0% in the previous quarter, largely due to a 1.7% drop in the warehouse segment.
The price index also saw a rise, growing by 1.4% quarter-on-quarter, reaching its highest level since Q4 2015. Despite this, both rental and price growth are expected to moderate due to slower economic growth, global policy uncertainties, and an increase in industrial supply.
In the warehouse sector, rents increased by 0.4% quarter-on-quarter, but occupancy fell to 88.8%, the lowest in five years. Demand remains strong from third-party logistics and e-commerce players, although older facilities are offering incentives to attract tenants. With over 8.7 million square feet of warehouse space expected by 2028, short-term pressure on rents is anticipated.
Business parks maintained a growth rate of 1.2% quarter-on-quarter, with occupancy improving to 76.7%. New completions like Punggol Digital District contributed to this growth. Some business parks are exploring rezoning, as seen with the residential project LyndenWoods.
Looking ahead, the industrial space supply is set to increase significantly until 2027. Despite global trade uncertainties, Singapore’s industrial sector remains robust, supported by trade-related sectors. However, the boost from front-loading activities is expected to diminish in the latter half of the year, with rental growth likely to moderate. Nonetheless, Singapore’s role as a logistics hub continues to attract demand for high-spec and bonded facilities.
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