Commentary on JTC's Q4 2025 Statistics

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

Rents 

The JTC All Industrial Rental Index increased by 0.5% q-o-q in Q4 2025, maintaining the same momentum as last quarter’s 0.5% q-o-q increase. This marks the 21st consecutive quarter of rental increase. For the full year, rents rose by 2.4% in 2025, a moderation from the full year increase of 3.5% observed in 2024. The JTC All Industrial Rental Index has also increased by 25.9% since the trough in Q3 2020.

Among the various market segments, rents for the warehouse segment rose the most by 1.1% q-o-q, accelerating from the 0.9% q-o-q increase in Q3 2025. For the full year, warehouse rents increased by 3.0% in 2025. While it was a slight moderation from 2024’s full year increase of 3.5%, the warehouse segment still recorded the highest rental growth when compared against other market segments. Robust demand for newly completed prime logistics facilities throughout the year lifted average rents.

• During the quarter, there were two major warehouse completions – Sankyu’s Tuas Distribution Hub, a fully air-conditioned prime logistics facility spanning over 400,000 sq. ft., and Nippon Express’ expanded 100,000 sq. ft. warehouse facility at 29 Tuas Avenue 13 to capitalise on future opportunities from its proximity to the Tuas Port and the development of the Johor-Singapore Special Economic Zone (JS-SEZ). Across various market segments, occupancy rates for the warehouse segment rose the most, by 0.2 ppt to 89.8% in Q4 2025.

 

Rents for the single-user factory segment increased by 0.7% q-o-q, with momentum on par with last quarter’s 0.7% q-o-q growth. For the full year, rents rose by 2.7%, slightly easing from the full year growth of 3.2% in 2024.

• In Q4 2025, notable completions were Paxocean Engineering’s facility at 5 Jalan Samulun (partial TOP), Advanced Substrate Technologies’ facility at 9 Pesawat Drive (partial TOP) and Wuxi Biologics Biopharmaceuticals’ facility at 2 Tuas View Drive. Occupancy rate for single-user factories decreased by 0.3 ppt to 88.8% in Q4 2025.

 

Overall rents in the business park segment increased by 0.4% q-o-q, a reversal from last quarter’s 0.2% q-o-q dip. For the full year, rents increased by 2.6%, accelerating from the full year increase of 1.9% in 2024. Across the various market segments, only the business parks segment recorded a rental acceleration in 2025 compared to 2024 on a full year basis, indicating resilient demand.

• Newer facilities in City Fringe locations continue to be highly sought after, which helped to lift average rental rates. However, some older assets in Rest of Island locations are facing challenges due to aging specifications and flight-to-quality trends. The two-tiered nature of the business park segment has given rise to a divergent performance in rents.
• Nevertheless, healthy market demand resulted in a decline for the overall vacancy rate, from 23.0% in Q3 2025 to 22.9% in Q4 2025.

 

Lastly, rents for the multi-user factory segment increased by 0.2% q-o-q in Q4 2025, moderating from the 0.4% q-o-q growth in the previous quarter. For the full year, rents rose by 1.8%, moderating from the full year increase of 3.8% in 2024.

• In Q4 2025, the major completions were Bulim Square (remaining TOP) and Stellar@Tampines (partial TOP). There were also two other food factory completions – Food Ascent and Food Vision @ Mandai. As a result of these project completions, occupancy rate for multi-user factories decreased by 1.1 ppt to 89.9% in Q4 2025.

 

Prices

According to JTC’s All-Industrial Price Index, prices increased by 1.4% q-o-q in Q4 2025, with momentum accelerating from the 0.6% q-o-q rise in Q3 2025. This marked the seventh consecutive quarter of prices increasing at a faster rate than rents amid strong demand for industrial assets. For the full year, prices rose by 5.0% in 2025, accelerating from the 3.5% growth recorded in 2024. With the steep decline in Singapore’s short to medium term interest rates compared to U.S. benchmark rates in 2025, the financing environment has been supportive for investors, leading to buoyant transactional activity for the industrial sector. Leasehold industrial assets continue to appeal to income-seeking investors given the positive carry, and this trend is expected to persist for the year ahead.

• Prices for the multi-user factory segment increased by 1.9% q-o-q in Q4 2025, accelerating from the 0.1% q-o-q increase last quarter. However, prices for the single-user factory segment declined by 0.3% q-o-q, a reversal from the previous quarter’s 2.1% q-o-q increase.

 
There is around 10.66 mil sq. ft. of new industrial space (or around 1.8% of total stock) to be completed in 2026, with the single-user factory segment accounting for 53.0% of 2026 supply. The remainder of the pipeline comprises warehouse, multi-user factories and business parks at 29.0%, 15.5% and 2.5% respectively.
 
Over the next three years, the only business park project in the pipeline is 27 IBP (0.21 mil sq. ft.), scheduled for completion in 2026. As more landlords evaluate and undertake asset enhancement initiatives to upgrade the specifications of aging facilities, supply is projected to tighten.

Outlook

Economic and manufacturing performance: According to advance estimates from the Ministry of Trade and Industry (MTI), Singapore’s economy continued its growth in Q4 2025 as GDP expanded by 1.9% q-o-q on a seasonally adjusted basis, easing from the 2.4% q-o-q expansion in Q3 2025. For the full year, Singapore’s economy expanded by 4.8% in 2025, accelerating from the 4.4% growth in 2024. The manufacturing sector grew by 15.0% y-o-y in Q4 2025, accelerating from the 4.9% y-o-y growth in Q3 2025. For the full year, the manufacturing sector expanded by 7.6% in 2025, accelerating from the 4.3% growth in 2024.
 
Recap of 2025: Singapore’s industrial market has demonstrated resilience over the past year. Although the tariffs announced by the U.S. in April caused some jitters in global markets, occupiers are looking beyond the short-term market volatility and planning for the future. While occupiers are still sensitive to cost pressures, Singapore’s safe-haven status, attractive talent pool, and its strategic location give rise to stability and investment for the long-term. Interestingly, the economic uncertainties have also resulted in new-to-market tenants and businesses expanding their footprint in Singapore, indicating a resilient leasing environment.
 
Prime logistics: Looking ahead, new supply for the prime logistics market is expected to be approximately 0.8 million square feet, a significant moderation from 2025’s new supply of 5.6 million square feet. With most of the supply in 2026 already pre-leased, options could be limited for occupiers. As at Q4 2025, CBRE’s prime logistics occupancy rate is 94.8%. It is anticipated that this rate may gradually increase towards 96-97% by end-2026. Therefore, the tighter market suggests stronger rental growth in 2026 for the prime logistics segment.
 
Johor-Singapore Special Economic Zone (JS-SEZ): According to the MTI in Oct 2025, Singapore-based firms have committed over S$5.5 billion of investments in Johor after the JS-SEZ deal. Companies are leveraging on the ‘twinning model’ by setting up complementary operations across both locations. For example, Olam Food Ingredients (ofi) has a Customer Solutions Centre in Singapore to develop market insights, supported by an advanced production facility in Johor to customise solutions for beverages, bakery, and frozen dairy desserts. Other examples provided by MTI can be found in this link. We expect the JS-SEZ to gain momentum in 2026 as Singapore and Malaysia jointly compete for global investments and attract new businesses.