Singapore industrial property continues to show solid momentum heading into 2025. The latest report from Colliers highlights how Singapore industrial property demand remains resilient, supported by tight supply, modernisation needs, and long-term shifts in advanced manufacturing.
Singapore Industrial Property Market Shows Steady Growth
Colliers’ Q3 2025 Industrial and Logistics Insights report points to a robust Singapore industrial property landscape. Prime logistics rents climbed to SGD 1.75 per square foot in Q3, while island-wide vacancy tightened to 10.9 percent due to withdrawals and redevelopment of ageing assets. Capital values rose to SGD 222 per square foot, and yields compressed to 7.20 percent. JTC warehouse rents led quarterly growth at 0.9 percent, helped by healthy take-up at newly completed facilities.
Catherine He, Head of Research at Colliers Singapore, noted that despite global trade headwinds, occupiers are focusing on modern, specification-rich assets that support automation and advanced manufacturing processes. This shift is expected to shape leasing strategies in the coming quarters.
Supply Pipeline Expands for Singapore Industrial Property
Industrial supply is projected to trend upward through the end of 2027, reaching roughly 1.3 million square metres. This exceeds the historical average by a notable margin. For comparison, the past three years saw annual averages of 0.9 million square metres of new supply and 0.6 million square metres of net take-up.
Demand is also being boosted by sectors tied to AI-related electronics and life sciences, which help mitigate uncertainties linked to global tariffs. Government efforts, including the completion of Bulim Square within the Jurong Innovation District, further strengthen the ecosystem for advanced manufacturing.
Selective Leasing Ahead as Singapore Industrial Property Evolves
Nicolas Menville, Executive Director and Head of Industrial Clients in Singapore, said the market is moving toward more selective leasing behaviour. Newer logistics assets with strong specifications will continue to command premiums, while older buildings will need upgrades to stay competitive. With a substantial supply wave expected up to 2027, occupiers are encouraged to secure high-quality space early, while owners should consider asset enhancement to capture emerging demand.
Looking ahead, Colliers forecasts industrial rents to grow about 2 percent in 2025, while prices are expected to rise around 4 percent. Investor confidence remains supported by Singapore’s stable macroeconomic environment and transparent regulatory framework.
