Singapore industrial investment sales drop 8.2% to 1,611 transactions in 2025

This is below the 4-year average of 1,799 deals.

Cautious investor sentiment continued to dampen Singapore’s strata industrial sales market in the fourth quarter of 2025, with both quarterly and full-year transaction volumes falling, according to a recent report by Savills.

Transaction Volumes Slip Below Four-Year Average

Savills reported that strata industrial transaction volume declined by 17.5% quarter-on-quarter (QoQ) to 368 deals in Q4/2025.

For the full year, total investment sales fell to 1,611 transactions — an 8.2% drop from 2024 and below the four-year average of 1,799 deals. The consultancy attributed the weaker performance to delayed purchasing decisions amid ongoing economic uncertainty, as well as a lack of new project launches in 2025.

The subdued environment reflects a more selective investment landscape, with buyers adopting a wait-and-see approach in the face of global headwinds.

Prices Continue to Rise Despite Softer Sales

Despite weaker transaction momentum, pricing trends remained resilient.

Savills noted that the JTC multiple-user factory price index gained pace in Q4/2025, rising 1.9% QoQ. For the full year, prices climbed 5.8%, outpacing the 4.9% growth recorded in 2024.

According to Savills, industrial assets with shorter remaining land tenures have attracted greater interest from both investors and occupiers during this period of prolonged uncertainty, helping to support price growth in this segment.

In particular, prices of 30-year leasehold industrial properties in Savills’ basket rose 5.1% year-on-year (YoY) to S$354 per sq ft in 2025 — an acceleration from the 4.1% growth seen in the previous year.

Growth Moderates for Longer-Tenure Assets

In contrast, price appreciation for longer-tenure industrial assets moderated in 2025.

Savills reported that freehold industrial property prices increased by a modest 2.4% YoY to S$856 per sq ft in Q4/2025. Meanwhile, prices of 60-year leasehold properties rose 3.9% YoY to S$552 per sq ft over the same period.

The divergence suggests that in an environment marked by heightened uncertainty and cautious capital deployment, investors are increasingly gravitating towards shorter-tenure assets, which typically carry lower quantum and may offer more flexible exit strategies.

Outlook: Selective Buying to Persist

Savills’ findings highlight a bifurcated market where transaction volumes have softened but pricing remains supported, particularly for assets aligned with current investor preferences.

While a lack of new launches and macroeconomic uncertainty may continue to weigh on sales momentum in the near term, pricing resilience — especially in shorter-lease industrial properties — suggests that demand fundamentals remain intact for well-positioned assets within Singapore’s industrial investment market.