Singapore
Commentary on JTC's Q2 2026 Statistics
July 23, 2026
Associated Contact
Head of Marketing & Communications, Singapore
Rents
Singapore’s industrial market extended its upcycle into a 23rd consecutive quarter of rental growth in Q2 2026. The JTC All Industrial Rental Index rose by 0.5% q-o-q, accelerating from the 0.4% increase in Q1 2026. Despite caution arising from the Middle East conflict, occupier enquiries remained resilient, reflecting Singapore’s appeal as a stable and well-connected business hub. Since the trough in Q3 2020, the JTC All Industrial Rental Index has risen by a cumulative 27.2%.Among the various market segments, rents for the single-user factory segment increased the most, by 0.7% q-o-q, with momentum moderating from last quarter’s 1.0% q-o-q growth.
- In Q2 2026, major completions were Advanced Substrate Technologies’ AST Building, which obtained TOP for its final phase and KLA-Tencor’s facility at 22A Ang Mo Kio Industrial Park 2. Occupancy rate for single-user factories increased by 0.1 ppt to 89.3% in Q2 2026.
Rents for the multi-user factory segment increased by 0.6% q-o-q in Q2 2026, accelerating from the 0.5% q-o-q growth in the previous quarter.
- During the quarter, there was only one project completion – Space 18. The 6-storey freehold building consists of 46 strata units and a temporary industrial canteen. Occupancy rate for multi-user factories rose by 0.3 ppt to 90.5% in Q2 2026.
Rents for the warehouse segment rose by 0.5% q-o-q in Q2 2026, at a faster clip than the 0.2% q-o-q increase last quarter.
- During the quarter, there was also only one project completion – 25 Senoko Loop. The 5-storey warehouse with 2-storey ancillary office obtained TOP for its final phase. Occupancy rates for the warehouse segment remained flat at 89.4% in Q2 2026.
Overall rents in the business park segment decreased marginally by 0.1% q-o-q, reversing the 0.3% q-o-q increase in Q1 2026.
- Despite the completion of 27 International Business Park during the quarter, which added 0.2 mil sq. ft. of space, vacancy rates declined from 23.3% in Q1 2026 to 22.1% in Q2 2026. That said, rental performance continued to diverge by asset quality. Prime, well-located properties with strong specifications maintained firm rents, while older or less competitive assets increasingly relied on incentives to retain and attract tenants.
Prices
According to JTC’s All-Industrial Price Index, prices rose by 0.6% q-o-q in Q2 2026, with momentum moderating from the 1.2% q-o-q increase in the previous quarter. This marked the ninth consecutive quarter of prices increasing at a faster rate than rents amid strong demand for industrial assets. Domestic interest rates continue to be conducive in supporting industrial transactions, with the 3-month SORA at 1.15% on 23 Jul 2026 compared to 1.19% on 31 Dec 2026. While interest rates have risen from its trough of 1.02% in Apr 2026, they have remained low, offering investors of leasehold industrial assets stable income and positive carry amid geopolitical volatility.
- Prices for the single-user factory segment rose by 1.1% q-o-q, reversing the slight dip of 0.1% q-o-q in Q1 2026. Multi-user factory segment also saw prices increase by 0.4% q-o-q in Q2 2026, easing from the 1.7% q-o-q growth in the previous quarter.
As at end-Jul 2026, there is around 4.40 mil sq. ft. of new industrial space (or around 0.7% of total stock) scheduled for completion over H2 2026, with the single-user factory segment accounting for 53.0% of H2 2026 supply. The remainder of the pipeline comprises warehouse and multi-user factories at 46.9% and 0.1% respectively.
For the business park segment, no additional business park supply is expected for the next few years for now. With more landlords evaluating asset enhancement initiatives for older business park facilities, this may result in tighter supply over the next few years.
Outlook
Looking ahead, the Middle East conflict that began in end-February have heightened economic headwinds in the near term. Despite this, CBRE observes continued resilience in occupier demand to date, with Singapore’s strong AI related manufacturing sector likely to act as a tailwind.
Prime logistics: Supply pipeline is expected to ease significantly in 2026, with Cogent's JILH Phase II the only major completion by Q4 2026. As at Q2 2026, CBRE’s prime logistics occupancy rate was 95.7%, rising from 94.8% in Q4 2025. This is expected to climb further by year-end as occupiers assess available space within existing stock to support expansion plans. Therefore, the prime logistics segment should see steady rental growth over the next few quarters.
Johor-Singapore Special Economic Zone (JS-SEZ): The JS-SEZ will allow firms to optimise capital allocation and scale more efficiently by splitting functions across borders—anchoring high value activities such as R&D and regional headquarters in Singapore, while expanding space- and labour intensive operations in Johor. While the JS SEZ master plan was initially targeted for launch in March, its timeline has been pushed to Q4 2026 to ensure implementation readiness and policy alignment, as well as strategic cooperation between Malaysia and Singapore. As greater clarity emerges around the “twinning” approach, execution risk should ease, translating into improved investor confidence and investment commitments.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm and a premier provider of critical infrastructure services. The company has more than 155,000 employees serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience, critical infrastructure); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.com.