Singapore’s industrial property market experienced stabilisation in leasing activity during the first quarter of 2025, according to Savills Singapore’s latest briefing. The total leasing volume saw a marginal year-on-year increase of 1.3%, reaching 2,902 tenancies. Despite this stability, rent trends across different property types showed mixed results.
The monthly rents for prime multiple-user factories, based on Savills’ basket of private industrial properties, rose by 0.4% quarter-on-quarter to $2.29 per square foot, recovering from a previous dip. In contrast, prime warehouse and logistics properties experienced a decline, with rents dropping by 2.5% to $1.69 per square foot.
Strata industrial sales activity remained subdued, with a 3.8% quarter-on-quarter decline, marking a five-year low of 351 transactions. However, leasehold property prices showed resilience, with 30- and 60-year leasehold properties increasing by 3.3% and 1.2% respectively. Freehold property prices, however, fell by 0.7% to $831 per square foot.
Business parks also saw varied rent changes. Prime business parks experienced a slower rent increase of 1.3% to $6.35 per square foot, whilst standard business parks saw a 1.7% rise to $4.11 per square foot. High-spec industrial spaces faced a slight decline, with rents slipping by 0.6% to $3.90 per square foot.
Looking ahead, Savills projects that multiple-user factory rents will continue to rise by up to 3.0% this year due to limited supply. However, rents for warehouse and business park spaces are expected to remain flat, as older developments may offset gains from newer facilities.
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