Singapore’s industrial sector demonstrated resilience in Q3 2025, according to the latest JTC Industrial Statistics. The manufacturing sector experienced a 6.1% quarterly growth, reversing previous declines, although it showed no annual growth. Leonard Tay, Head of Research at Knight Frank Singapore, highlighted the sector’s stability amidst economic volatility.
The all-industrial price index rose by 0.6% quarter-on-quarter, with significant transactions such as the sale of a data centre for S$354m and the acquisition of multiple properties by an EZA Hill-led consortium for S$329m. Despite a 9.2% drop in sales volume and a 34.1% decline in total sales value to S$1.5b, easing interest rates have attracted institutional investors back into the market.
The rental index increased by 0.5%, with occupancy rates improving slightly to 89.1%. Although leasing activity slowed, rental growth was noted in certain segments. Tay noted that “local SMEs are selectively exploring suitable premises to purchase for business continuity.”
Transport engineering, particularly aerospace, continues to expand, driven by increasing air travel accessibility in Asia. ST Engineering’s new facility in Paya Lebar is set to double engine maintenance capacity by 2027. Additionally, the development of Tuas Port is expected to boost shipping and logistics activities, with PSA Singapore and Cosco collaborating on a new facility.
Investor interest in industrial properties is projected to remain strong, with prime logistics, data centres, and specialised manufacturing facilities attracting attention. The all-industrial price index has risen 3.6% in 2025, with factory values expected to grow closer to the higher end of the 3% to 5% range.
