Singapore remains costly but stable logistics hub in Asia Pacific: JLL

Warehouse rental rates in Singapore are amongst the highest in Asia Pacific, according to Waypoint.

Singapore continues to rank as one of the most expensive but reliable real estate markets in Asia Pacific, according to JLL’s Waypoint report.

Whilst logistics and industrial demand remain healthy, high costs for construction, labour, and electricity are shaping investor strategies across the city-state.

The report noted that Singapore’s industrial rental growth remained positive as of Q4 2024, positioning it above the global average, though below fast-growing emerging markets.

Warehouse rental rates in Singapore are amongst the highest in Asia Pacific, according to Waypoint. This premium pricing reflects land scarcity, advanced infrastructure, and a strong demand base from occupiers seeking strategic logistics locations in Southeast Asia.

On the cost side, construction expenses in Singapore rank amongst the highest in the region, alongside markets like Sydney, Tokyo, and Hong Kong. The report featured a benchmark showing Singapore's position well above the global sample median, attributing it to a tight construction market, strict building regulations, and elevated labour costs.

Waypoint also highlighted labour considerations as a critical factor in logistics and production decisions. Whilst the Singapore-specific commentary is limited, the broader APAC discussion implies that tight labour supply and high wages in Singapore continue to influence operational planning, especially for logistics-heavy investments.

Electricity costs in Singapore are also significantly above the global median, according to a global index featured on page 27.

The city-state ranks amongst the most expensive countries for business electricity rates, alongside European markets like Germany and Switzerland.

Despite these challenges, the report affirmed Singapore’s appeal to long-term investors, particularly in industrial and logistics sectors where reliability, location, and tenant quality often outweigh cost considerations.

Cross-border capital continues to flow into the market, supported by Singapore’s strong legal framework and macroeconomic stability.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia