Colliers Singapore has unveiled its Q3 2025 Industrial & Logistics Insights, highlighting a robust industrial property market despite global trade uncertainties. The report underscores a trend towards specification-led demand, particularly for automation-ready and advanced manufacturing facilities, which is shaping leasing strategies and driving market performance.
Prime logistics rents increased to $1.28 (S$1.75) per square foot, supported by a tight supply and healthy demand. Island-wide vacancy rates tightened to 10.9%, influenced by the withdrawal and demolition of older estates. Capital values rose to $162.50 (S$222) per square foot, with yields compressing to 7.20%. The demand for AI-related electronics and life sciences is providing a buffer against macroeconomic challenges.
Catherine He, Head of Research at Colliers Singapore, noted, “Singapore’s industrial sector remains resilient despite global trade headwinds. Occupiers are prioritising assets that meet operational needs such as specification-rich facilities that support automation and advanced manufacturing.”
The report also projects a steady rise in industrial supply through to the end of 2027, with an anticipated total of 1.3 million square metres, significantly above the historical average. Nicolas Menville, Executive Director and Head of Singapore-based Industrial Clients, commented on the evolving leasing environment, stating, “Modern logistics assets will continue to command premiums, whilst older stock must adapt to stay competitive.”
Colliers forecasts a moderation in industrial rental growth to around 2% in 2025, with price growth expected to edge up by approximately 4%, bolstered by investor confidence in Singapore’s stable macroeconomic environment.
