Singapore to see record levels of new warehouse supply in 2025

Nearly 1 million sqm of new supply is expected to come onstream, the highest since 2017.

The warehouse segment in Singapore registered marginal increases in rent (+ 0.5% q-o-q) and occupancy (+ 20 basis points) to 91.3% from the previous quarter.

According to Catherine He, Head of Research, Colliers Singapore, rental growth has slowed as more space is made available; some tenants have downsized or given up space in light of elevated rents, especially in prime logistics where rents have grown by close to 40% since 2020. 

“This can also be attributed to the impact of higher interest rates and a softer labour market where businesses and consumers are investing and spending with caution. As such, there has been a slowdown in e-commerce and less buildup of inventory. Stiff competition amongst third party logistics players (3PLs) have also eroded margins and affected some of these businesses,” He added.

Further, Colliers revealed that there is a deluge of supply (0.85 mil sqm) coming on stream in 2025, the highest since 2017 (0.96 mil sqm). With more options available, occupancy rates and rents for warehouses will inevitably ease further.