Industrial prices up 4.2% outpace rents in Q3 as occupancy eases

Warehouse was the only segment with rising occupancy at 89.7% in Q3.

Singapore industrial property prices outpaced rents in the third quarter, rising 4.2% year-on-year (YoY) against rental growth of 2.1%, according to JTC.

Overall occupancy eased 0.2 percentage points quarter-on-quarter (QoQ) and year-on-year to 88.9%.

JTC attributed the decrease to tenants vacating older single-user factory and multiple-user factories to be developed and slower demand for suburban business park.

Overall rental index rose by 0.5% QoQ and 2.1% YoY in line with inflation. Overall price index rose at a slightly faster pace of 1.0% QoQ and 4.2% YoY, amidst resilient demand and low interest rates.

Warehouse was the only segment that saw an increase in occupancy, up 0.3 percentage points QoQ to 89.7%, whilst multiple-user factory stood at 90.3%, single-user factory at 89.1%, and business park at 77.2%.

All segments saw an uptick in rent, with Multiple-User Factory up 0.3% QoQ and 1.6% YoY, followed by Single-User Factory up 0.7% QoQ and 3.1% YoY, Business Park up 0.1% QoQ and 0.7% YoY and Warehouse up 1% QoQ and 2.8% YoY.

Prices increased for all segments, with multiple-user factory up 1.1% QoQ and 5.3% YoY, whilst single-user factory rose 0.8% QoQ and 1.5% YoY.

For industrial government land sales in Q3, tenders for two single-user sites and one multiple-user site closed.

6 Tuas Avenue 14, a single-user development, and 5 Tuas Avenue 13, a multiple-user development, were successfully awarded, whilst the single-user site at Jalan Besut closed with no bids crossing the reserve price.

JTC allocated a total of 80,400 sq m of ready-built facilities to industrialists in Q3, with total returns of 105,800 sq m. About 71% of returns were due to natural expiries or consolidation of operations.

JTC forecasts 0.3 mil sq m of supply to be completed in Q4, according to planning approvals as of end-September. 56% of the supply is single-user factory space, whilst 44% is for warehouses.

An average annual supply of 1.2 mil sq m of industrial space is expected to be completed between 2027 to 2030, with about 59% for single-user factory space.

Follow the link for more news on

industrial occupancy

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