Singapore industrial rents to grow 2% in 2025

Meanwhile, prices are expected to increase by 4%.

Colliers Singapore recently released its Q3 2025 Industrial & Logistics Insights, highlighting a resilient industrial property market supported by tight near-term supply and structural demand for advanced manufacturing and logistics facilities.

Prime logistics rents edged up to SGD 1.75 psf in Q3 2025, while island-wide vacancy tightened to 10.9% following withdrawals and demolitions in older estates. Capital values rose to SGD 222 psf, with yields compressing to 7.20%. JTC warehouse rents led growth at +0.9% quarter-on-quarter, underpinned by healthy take-up at newly completed projects.

Catherine He, Head of Research at Colliers Singapore, commented: “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. This trend will define leasing strategies in the coming quarters.”

Industrial supply is projected to rise steadily through end-2027, totalling about 1.3 million sqm, significantly higher than the historical average. For comparison, annual supply and demand over the past three years averaged 0.9 million sqm and 0.6 million sqm, respectively.

Structural demand shifts, particularly in AI-related electronics and life sciences, are cushioning the impact of U.S. tariff uncertainty. Government initiatives, including the completion of Bulim Square within the Jurong Innovation District, reinforce Singapore’s ecosystem for advanced manufacturing.

Nicolas Menville, Executive Director and Head of Singapore based Industrial Clients, added: “We expect a more selective leasing environment going forward. Modern logistics assets will continue to command premiums, while older stock must adapt to stay competitive. With a significant supply wave expected until the end of 2027, occupiers should lock in quality space early, and owners should consider asset enhancement initiatives to capture demand.”

Colliers forecasts industrial rental growth to moderate to around 2% in 2025, while price growth is likely to edge up by around 4%, supported by investor confidence in Singapore’s macroeconomic stability and transparent regulatory environment.