Singapore’s industrial property market demonstrated remarkable resilience in Q2 2025, with a significant 185.5% increase in total sales value, reaching S$2.2 billion, according to Knight Frank’s analysis of JTC’s latest statistics. The sector’s stability is attributed to robust buyer interest and an active investment market, despite global supply chain disruptions and US-imposed tariffs.
The all-industrial price index rose by 1.4% quarter-on-quarter (q-o-q), whilst the rental index saw a 0.7% increase. The number of transactions also climbed to 424, a 4.7% rise from the previous quarter. Notable transactions included the sale of a data centre at 9 Tai Seng Drive for S$455.2 million and business park properties, The Strategy and 5 Science Park Drive, for S$280.0 million and S$245.0 million, respectively.
Leonard Tay, Head of Research at Knight Frank Singapore, noted that Singapore remains an attractive hub for investors and businesses. “Despite the current turmoil among goods-producing countries, Singapore continues to be a trusted investment and business hub,” he stated. The minimal 10% tariffs imposed by the US on Singapore, compared to other South-East Asian nations, have been a consideration for globally mobile manufacturers.
The industrial sector’s appeal is further bolstered by new developments, such as Cariflex’s polyisoprene plant on Jurong Island and Alcon Manufacturing’s expanded operations in Tuas. Additionally, Micron Technology’s upcoming S$8.9 billion plant in Woodlands and the National Semiconductor Translation and Innovation Centre for Gallium Nitride at one-north are set to enhance Singapore’s manufacturing capabilities.
Looking ahead, the industrial investment environment is expected to remain stable, with investors seeking logistics and multiple-user industrial assets. However, the global manufacturing outlook remains uncertain, potentially affecting rental growth in the latter half of 2025.
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