Singapore’s industrial property market has once again demonstrated its staying power, marking its 20th consecutive quarter of rental growth in the third quarter of 2025. Data released by JTC and highlighted in Cushman & Wakefield’s latest commentary shows that overall industrial rents rose 0.5% quarter-on-quarter, following a 0.7% increase in the previous quarter. Although the pace of growth has moderated slightly, the continued uptrend underscores the resilience of the sector amid global economic uncertainty and shifting industrial demand patterns.
Analysts note that Singapore’s industrial property sector has benefited from a steady stream of occupier demand, particularly in high-specification logistics and light industrial spaces. Even as some manufacturers face cost pressures and weaker external trade, demand remains firm for modern, efficient facilities in established clusters such as Tampines Industrial Park, Loyang Industrial Estate, and Tuas View. “The fact that rents have risen for 20 consecutive quarters signals structural strength in Singapore’s industrial ecosystem,” said one market observer. “The island’s role as a regional logistics and manufacturing hub continues to draw both occupiers and investors.”
Performance has been uneven across sub-segments. Jurong Innovation District (JID), for example, continues to attract interest from advanced manufacturing firms seeking automation-ready infrastructure. In contrast, some older multi-user factories in Kaki Bukit and Defu Industrial Estate are feeling the pinch as tenants migrate toward newer, greener facilities. Business park spaces in city-fringe locations such as one-north and Mapletree Business City remain well-occupied, with vacancy levels around 7.9%. By comparison, suburban business parks like Changi Business Park are facing higher vacancy rates—about 28%—as tenants consolidate space in better-connected districts.
On the pricing front, industrial property prices increased by 0.6% quarter-on-quarter in Q3, bringing the year-to-date growth to 3.6%. While this marks a slowdown from the 1.4% rise recorded in the second quarter, market players say it reflects a more measured, sustainable phase of expansion. Developers and investors are taking a cautious stance as global headwinds—including trade frictions, weaker manufacturing output, and higher financing costs—begin to weigh on sentiment.
The resilience of prime logistics facilities remains a bright spot. In the Tuas Mega Port and Changi North logistics corridor, space remains tight, with leasing activity led by third-party logistics providers and e-commerce operators. These facilities are commanding higher rents as occupiers compete for well-located warehouses that support last-mile distribution and regional export functions. Several industrial REITs are also rejuvenating older assets to meet modern requirements like higher ceiling heights, automation readiness, and sustainability certifications.
Meanwhile, upcoming supply could slightly temper rental growth in the medium term. Around 300,000 square metres of new industrial space are expected to be completed in the second half of 2025, followed by nearly 3 million square metres through 2027. Much of this pipeline is concentrated in Tuas, Woodlands North Coast, and Punggol Digital District, areas targeted for long-term industrial expansion. While the additional stock will help meet pent-up demand, it could also test absorption rates, particularly for older suburban sites.
Still, fundamentals remain solid. Singapore’s pro-business environment, stable policy framework, and strong connectivity continue to underpin industrial activity. The government’s steady release of land under the Industrial Government Land Sales (IGLS) programme—such as recent sites at Tampines North Drive, Gambas Way, and Jurong West Avenue 2—ensures a balanced flow of new developments while preventing market overheating.
For investors, the latest data reinforces the importance of selectivity. Assets in prime logistics and city-fringe industrial zones are likely to remain resilient, while older suburban stock may need repositioning or redevelopment. For occupiers, the continued rental growth signals the importance of securing leases early, as costs in high-demand zones are unlikely to ease.
Singapore’s industrial property market has now sustained growth for five years straight—a feat that highlights its adaptability and long-term strength. From the cutting-edge facilities of Jurong Innovation District to the modern logistics hubs in Tuas and Changi, the sector continues to evolve with the economy, proving once again that resilience remains its defining trait.
