Rise in Singapore industrial rents tapers to 2.4% for 2025 after almost flat Q4: JTCÂ

[SINGAPORE] Rents of Singaporeâs industrial spaces rose 2.4 per cent in 2025, slowing from a 3.5 per cent gain in 2024 and an 8.9 per cent surge in 2023.The rise in the JTC rental index for all industrial space marked its smallest annual increase since 2021, based on data released on Thursday (Jan 22).Â On a quarterly basis, industrial rents edged up 0.5 per cent in the fourth quarter. While momentum is slowing, the Q4 data nevertheless showed 21 straight quarters of increases from Q4 2020.Rents in the multiple-user factory segment inched up 0.2 per cent in Q4, increasing 1.8 per cent year on year.Â Rents for warehouses grew 1.1 per cent quarter on quarter and were up 3 per cent from Q4 2024. In the single-user factory segment, rents increased 0.7 per cent on a quarterly basis and 2.7 per cent on a yearly basis. Business park rents grew 0.4 per cent from Q3 and were up 2.6 per cent over the year.In Q4, the price index of all industrial spaces gained 1.4 per cent from Q3. All industrial prices were up 5 per cent from the year-ago period.Â Multiple-user factory prices rose 1.9 per cent in Q4, while single-user factory prices were down 0.3 per cent from Q3. On a yearly basis, prices of multiple-user factories climbed 5.8 per cent, while prices of single-user factories increased 2.6 per cent.Â Overall occupancy stood at 88.7 per cent, down 0.4 percentage point from 89.1 per cent in the previous quarter and 0.3 percentage point lower than the 89 per cent recorded a year earlier.Â The decline was driven by strong completions, leading to an increase in total industrial stock by 345,000 square metres (sq m), JTC said.Â The warehouse and business park segments logged marginally higher occupancies compared with the previous quarter. In Q4, warehouses had an occupancy of 89.8 per cent, from 89.6 per cent, while business parks had an occupancy of 77.1 per cent, from 77 per cent in Q3.Â Occupancy for the multiple-user and single-user factory segments declined slightly in Q4. The occupancy rate for the multiple-user factory segment stood at 89.9 per cent in the fourth quarter, down from 91 per cent in the third quarter. The single-user factory segment recorded an occupancy of 88.8 per cent, declining from 89.1 per cent previously.Â Total available stock in Q4 stood at 54.3 million sq m, increasing from the 53.9 million sq m available in the previous quarter.Â Transaction sale volume, according to estimates based on caveats lodged for industrial properties, fell 3 per cent in 2025 compared to 2024. Meanwhile, rental transaction volume rose 2 per cent in 2025 from 2024.Â During the quarter, JTC allocated a total of 67,800 sq m of ready-built facilities (RBF) to industrialists. This included 33,700 sq m of high-rise space and 29,300 sq m of land-based factory space.Â The total amount of RBF space returned in Q4 amounted to 103,900 sq m, of which 47,700 sq m was high-rise space and 37,300 sq m was land-based factory space.Â Â Among the high-rise space that was allocated, about 39 per cent was in JTCâs newer developments which include JTC Defu Industrial City, Bulim Square and 1 North Coast.Â In the coming year, JTC expects one million sq m of industrial space to be completed.Some 53 per cent of new supply will be from single-user factory spaces. Warehouse spaces will account for 29 per cent of the supply, while multiple-user factory space will account for 16 per cent. The remaining 2 per cent will come from business park space.Â In 2027 and 2028, an additional 2.5 million sq m of industrial space is expected to be completed. This translates to an average annual supply of about 1.1 million sq m from 2026 to 2028.In comparison, the average annual supply and demand for industrial space were about 800,000 sq m and 600,000 sq m over the past three years, respectively.