Singapore industrial rents up 2.3% yoy, inch up 0.5% qoq in Q3: JTC
Industrial prices rise 5.7% year on year and 0.6% from previous quarter
[SINGAPORE] Rental rates and prices for industrial spaces in Singapore grew marginally in the third quarter of 2025 compared with those in the prior quarter, according to JTC’s latest data released on Thursday (Oct 23).
The rental index for Q3 grew 2.3 per cent from a year earlier, representing a slight uptick from the 2 per cent year-on-year growth seen in Q2. On a quarter-on-quarter basis, growth in the rental index moderated to 0.5 per cent, compared with the 0.7 per cent rise in Q2.
Among segments, warehouse rentals recorded the highest quarter-on-quarter growth, at 0.9 per cent, and were up 2.7 per cent from Q3 2024.
On a quarter-on-quarter basis, rents rose by 0.7 per cent for the single-user factory segment and 0.4 per cent for the multiple-user factory segment. However, they fell by 0.2 per cent for business parks.
On the year, rents grew 2.3 per cent for business parks, 2.1 per cent for the single-user factory segment and 2 per cent for the multiple-user factory segment.
While the price index of industrial properties for Q3 was up 5.7 per cent year on year, price growth moderated to 0.6 per cent from the previous quarter – marking the slowest quarter-on-quarter rise since Q3 2024.
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Meanwhile, transaction volume for industrial properties, estimated based on caveats lodged, fell by 5 per cent from the year-ago period.
Despite lower sales, Leonard Tay, head of research at Knight Frank Singapore, noted that a greater range of investible Singapore industrial are moving into positive carry territory and drawing institutional investors.
“Local small and medium-sized enterprises are also selectively exploring suitable premises to purchase for business continuity amid the unpredictable economic conditions,” he said.
In the multiple-user factory segment, prices rose 5.7 per cent on the year but inched up only 0.1 per cent on the quarter.
Prices for the single-user factory segment grew 5.4 per cent from Q3 2024 and 2.1 per cent from Q2 2025.
As at Q3 2025, the total industrial stock stood at 53.9 million square metres (sq m). The overall occupancy rate stood at 89.1 per cent in the quarter, up 0.3 percentage point from the previous quarter and 0.1 percentage point higher year on year.
The warehouse, business park and single-user factory segments logged higher occupancy compared with a quarter ago, by 0.8 percentage point, 0.3 percentage point and 0.1 percentage point, respectively. Occupancy for the multiple-user factory segment was unchanged from the prior quarter.
Upcoming supply
Some 210,000 sq m of industrial space could be completed in Q4 2025, JTC said.
Of this, about 61 per cent would comprise single-user factory space; multiple-user factory space and warehouse space would account for 36 per cent and 3 per cent, respectively.
Between 2026 and 2028, an additional 3.6 million sq m of industrial space is expected to be completed, which translates to an average annual supply of around 1.2 million sq m.
Outlook
Knight Frank Singapore’s Tay noted that industrial real estate indicators are expected to remain stable for the remainder of 2025 and into early 2026.
He expects investor appetite for industrial properties to remain healthy for the rest of 2025 as interest rates fall and as the financial viability of prime logistics properties, data centres and specialised manufacturing facilities draw more interest on the back of positive carry.
Moreover, Tay believes that investors will search for quality assets with leases of “decent lengths, which offer stable rental income while providing a degree of security amid ongoing economic uncertainties”.
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