Cushman & Wakefield’s latest MarketBeat report reveals significant developments in Singapore’s industrial and capital markets for Q3 2025. Prime logistics rents have increased by 0.9% quarter-on-quarter, driven by limited supply and strong demand. Meanwhile, total investment volume surged by 31% to $9.3b, with residential, commercial, and mixed-use sectors leading the charge.
Prime logistics rents have seen a modest rise after three quarters of stability, attributed to a constrained supply pipeline and robust demand. Despite subdued leasing enquiries, the market is expected to benefit from favourable US tariff terms compared to other Asia Pacific economies. The supply of business parks is anticipated to tighten from 2026, potentially boosting occupancy rates.
In the capital markets, the residential sector experienced a 127.1% quarter-on-quarter increase, largely due to Government Land Sales. Commercial investments rose by 40%, highlighted by the sale of a 55% interest in CapitaSpring for $1b. Industrial transactions, however, saw a decline, with volume falling by 55% due to smaller deals.
The report also notes a supportive environment for investment sales, with lower interest rates and mild inflation. “A lower interest rate and mild inflation environment coupled with steady property rental growth across most property asset classes should provide a supportive backdrop for investment sales,” stated Cushman & Wakefield.
Looking ahead, the industrial supply pipeline appears manageable, with a focus on single-user factories and warehouses. The tapering supply of business parks from 2026 is expected to improve occupancy rates, enhancing their value proposition.
