Singapore 1H 2025 Industrial Market update

Based on my experience observing Singapore's industrial property landscape, the market continues to demonstrate robust demand despite new developments increasing available space. For example, in 2Q 2025, although over 285,000 sqm of industrial space was completed, demand still exceeded supply by around 129,000 sqm, reflecting a healthy appetite from businesses seeking modern facilities. Occupancy rates remain strong overall, with a slight easing to about 88.8%, and notable improvement in the business park segment which rose to 76.7%. Many tenants are gravitating towards areas like Punggol Digital District, attracted by its connectivity and infrastructure suited for tech and digital enterprises. This shift indicates a maturing market that is aligning with Singapore's focus on innovation-driven growth. From an investment angle, industrial REITs such as Mapletree Industrial Trust and Keppel DC REIT continue to draw interest, partly due to their exposure to quality assets in this sector. Investors should monitor how evolving occupancy rates and rental price movements impact distribution per unit (DPU) growth, an important metric for REIT shareholders. Additionally, macroeconomic factors like Singapore’s economic forecast for 2025 and the overall asset under management (AUM) landscape, estimated at 5.4 trillion SGD, provide a backdrop that supports sustained industrial property demand. Businesses looking to expand or relocate would do well to consider these market dynamics. Overall, keeping an eye on these trends can help tenants and investors make informed decisions in Singapore’s evolving industrial property market.