Singapore’s industrial market holds firm as specification-led demand shapes leasing
11 Nov 20253 min read
Summary
- Singapore’s industrial and logistics market remained resilient in Q3 2025 as tight near term supply and strong demand for modern, specification rich facilities supported rental and capital value growth. Prime logistics rents rose to SGD 1.75 psf and vacancy tightened to 10.9 percent, reflecting continued preference for assets that enable automation and advanced manufacturing.
- Industrial supply is set to increase to about 1.3 million sqm through end 2027, well above historical averages, creating a more selective leasing environment. Colliers expects modern logistics assets to command premiums while older stock will need upgrades to stay competitive, and confirms that warehouse data in the report is not broken down into bonded and non bonded categories.
- Beyond Singapore, Southeast Asia continued to show strong industrial momentum in Q3 2025, led by Indonesia and Thailand. Robust land absorption in Greater Jakarta and rising occupancy in Thailand’s Eastern Economic Corridor reflect ongoing investment in electronics, EV components and value added manufacturing across the region.
SINGAPORE, November 11, 2025 – Colliers Singapore today released its Q3 2025 Industrial and 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 percent following withdrawals and demolitions in older estates. Capital values rose to SGD 222 psf, with yields compressing to 7.20 percent. JTC warehouse rents led growth at 0.9 percent quarter-on-quarter, underpinned by healthy take up at newly completed projects.
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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.
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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.”
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