Commentary on JTC's Q3 2026 Statistics

By Tricia Song (宋明蔚), Head of Research, Singapore and Southeast Asia, CBRE

Singapore’s industrial market extended its upcycle into a 24th consecutive quarter of rental growth in Q3 2026. The JTC All Industrial Rental Index rose by 0.5% q-o-q, matching the 0.5% gain in Q2 2026. Despite higher oil prices and inflation concerns arising from the Middle East conflict, occupier interest in Singapore remains strong, anchored by stability, a deep talent base and a business-friendly environment. Since the trough in Q3 2020, the JTC All Industrial Rental Index has risen by a cumulative 27.8%.

Among the various market segments, warehouse rents led the increase, rising by 1.0% q-o-q in Q3 2026, double the 0.5% q-o-q growth in Q2 2026.

• During the quarter, the only major warehouse completion was Zap Building at 3 Woodlands Industrial Park E7. Occupancy rate for the warehouse segment increased by 0.3 ppt to 89.7% in Q3 2026.

 

Single-user factory rents rose by 0.7% q-o-q, similar to the pace in Q2 2026.

• In Q3 2026, one major completion was Equinix’s SG6, a nine-storey data centre at 21 Jalan Tukang. SG6 was awarded with 20 megawatts (MW) of power in 2023 under Singapore’s pilot Data Centre-Call for Application (DC-CFA), an initiative to promote the development of sustainable data centres.
• TBCAnother major completion was VisionPower Semiconductor Manufacturing Company’s (VSMC) facility at 2 Tampines Industrial Avenue 1 (final phase of TOP). VSMC is a joint venture between Taiwan's Vanguard International Semiconductor Corporation and Dutch chipmaker NXP Semiconductors.
• Occupancy rate for the single-user factory segment slipped by 0.2 ppt to 89.1% in Q3 2026 amid several project completions.

 

Rents for the multi-user factory segment increased by 0.3% q-o-q in Q3 2026, moderating from the 0.6% q-o-q growth in the previous quarter.

• Multi-user factory occupancy declined 0.2 ppt to 90.3% in Q3 2026. The only major completion was Tampines Connection at 2 Tampines North Drive 4, a 10-storey strata-titled building with 239 production units and two industrial canteens.

 

Overall rents in the business park segment edged up by 0.1% q-o-q, reversing the 0.1% q-o-q dip in Q2 2026.

• Although there were no business park project completions during the quarter, the vacancy rate increased from 22.1% in Q2 2026 to 22.8% in Q3 2026 amid rightsizing by some occupiers. However, rental performance continued to diverge by asset quality. Prime facilities with modern specifications and access to amenities maintained firm rents, while older or less competitive assets increasingly relied on incentives to attract and retain tenants.

Future Supply

As of end-Sep 2026, about 2.71 mil sq. ft. of new industrial space (or around 0.5% of total stock) is scheduled for completion by year-end. Single-user factories account for 56.1% of Q4 2026 supply, followed by warehouses at 43.7% and multi-user factories at 0.2%.

No new business park project is in the pipeline for the next few years. More landlords are also exploring asset enhancement initiatives for business parks with dated specifications, which is likely to tighten supply further.

Outlook

• Economic and manufacturing performance: According to advance estimates from the Ministry of Trade and Industry (MTI), Singapore’s economy expanded by 1.1% q-o-q on a seasonally adjusted basis in Q3 2026, easing from the 1.5% q-o-q growth in Q2 2026. The manufacturing sector expanded by 7.5% y-o-y in Q3 2026, moderating from the 12.9% y-o-y growth in Q2 2026. Among the various manufacturing clusters, output expansions in electronics, precision engineering, transport engineering and general manufacturing outweighed output declines in chemicals and biomedical manufacturing. 
• Opportunities and risks: Looking ahead, Singapore’s manufacturing sector, in particular the electronics and precision engineering cluster, is likely to benefit from sustained hyperscaler investment in AI infrastructure. CBRE has observed that firms within the semiconductor supply chain remain keen to retain or expand their presence in Singapore. That said, the optimism is not broad-based as higher diesel prices and labour costs continue to raise operating costs for industrialists.
• Prime logistics: Future supply is set to moderate significantly in 2026 compared to last year, with Cogent's JILH Phase II the only major completion expected by Q4 2026. CBRE’s prime logistics occupancy rate rose from 95.7% in Q2 2026 to 96.1% in Q3 2026, supported by sustained demand for modern ramp-up facilities. Given strong pre-commitments for pipeline projects up to 2027, occupiers should evaluate their options early amid limited space. Occupiers are also focused on cost management amid inflationary pressures, which has prompted landlords to prioritise occupancy over rental uplifts. Prime logistics rents are therefore expected to grow at a measured pace into 2027.

 

Johor-Singapore Special Economic Zone (JS-SEZ): The JS-SEZ Masterplan and Investment Blueprint, originally targeted for launch in March 2026, has since been completed and approved by Malaysia's Cabinet. Both prime ministers are now expected to launch it jointly at the Malaysia-Singapore Leaders' Retreat in December 2026. Once launched, the Masterplan should give firms more clarity on investor facilitation and cross-border project delivery, and on how to apply the "twinning" approach, which anchors high value activities such as R&D and regional headquarters in Singapore, while expanding space- and labour intensive operations in Johor.