Knight Frank says industrial real estate indicators were stable in 3Q2025 and are expected to remain so for the remainder of the year and into early 2026.
However, certain sub-sectors are weak. Business parks in the east and west regions have lower occupancy levels compared to those in the central area, Knight Frank points out.
“Some of these properties are due for a refresh and repositioning for occupiers in the post-pandemic period. The recent opening of RD American School in Changi Business Park brings a new type of tenant to the area. The campus features a flexible layout where open, reconfigurable areas foster activity and social interaction, rather than traditional classrooms,” Knight Frank says in a report released Oct 22.
Industrial leasing activity slowed down in 3Q2025, declining 5.7% q-o-q and 4.1% y-o-y to 3,168 rental transactions, Knight Frank reports. The value of rental transactions totalled $28.1 million, down 7.0% q-o-q and 3.6% y-o-y.
Island-wide median unit rents remained relatively unchanged in September, with some rental growth observed in the 25th percentile and the median bands.
“With interest rates easing, a greater range of investible Singapore industrial properties are increasingly moving into positive carry territory, drawing institutional investors from the sidelines into more active market and product discovery. In the same vein, local SMEs are also exploring suitable premises to purchase for business continuity amid the unpredictable economic conditions,” Knight Frank says.
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A data centre at 51 Serangoon North Avenue 4 was sold for $354. An EZA Hill consortium acquired three logistics and two industrial properties for $329 million from CapitaLand Ascendas REIT.
Overall, sales volume fell 9.2% q-o-q to 424 transactions and total sales value declined 34.1% to $1.5 billion in 3Q2025.
