Manila records strongest H1 logistics rental growth of 7.7% in Southeast Asia

Logistics demand in the region remained firm as supply conditions diverged.

Logistics occupier demand across emerging Southeast Asia remained resilient in the first half of 2026, supported by manufacturing activity, China-plus-one strategies and domestic consumption growth, according to Knight Frank.

The firm said manufacturers, e-commerce companies and logistics operators continued to seek regional distribution capacity, although leasing conditions varied across markets as recent supply additions affected vacancy and rental performance.

Vietnamese markets continued to record elevated vacancy levels, but availability tightened noticeably as 3PL firms and Chinese electronics manufacturers increased their space requirements. In Greater Ho Chi Minh City, a lack of new supply also contributed to higher rents.

Manila recorded the strongest rental performance in Southeast Asia, with rents for logistics space rising 7.7% during the first six months of 2026 as stronger demand for prime facilities supported pricing.

In Singapore, rental growth stabilised following a strong increase in 2025, with the market remaining broadly balanced. Knight Frank noted that a sizeable volume of new supply is scheduled for delivery in 2026, but steady leasing demand is expected to continue supporting occupancy levels.