[SINGAPORE] Prices and rentals of industrial space rose year on year (yoy) in the third quarter of 2026, supported by resilient demand and low interest rates, even as overall occupancy dipped slightly.
The industrial property price index climbed 1 per cent quarter on quarter (qoq) and 4.2 per cent yoy, and the rental index rose 0.5 per cent and 2.1 per cent, respectively, JTC’s quarterly report showed on Thursday (Oct 22).
The overall occupancy rate eased 0.2 percentage point from the previous quarter to 88.9 per cent, weighed down by tenants vacating older factories earmarked for redevelopment and weaker demand for suburban business parks.
By asset type, the occupancy rate of single-user factory space declined 0.2 per cent qoq to 89.1 per cent in Q3. Prices rose 0.8 per cent, while rents were up 0.7 per cent.
The occupancy rate of multiple-user factory space declined 0.2 per cent on quarter to 90.3 per cent. It recorded a 1.1 per cent growth in price and 0.3 per cent increase in rental index for Q3.
The rental index for business park space grew 0.1 per cent qoq, and the occupancy rate in Q3 was 77.2 per cent. Warehouse space recorded a 1 per cent qoq growth in rental and a 89.7 per cent occupancy rate for the quarter.
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On year, multiple-user factory spaces, single-user factory spaces, business parks and warehouses recorded a rental uptick of 1.6 per cent, 3.1 per cent, 0.7 per cent and 2.8 per cent, respectively.
Pointing to a “good pipeline supply” of new industrial space, JTC said that as at end-September, around 300,000 square metres (sq m) of such space could be completed in Q4.
Single-user factory space makes up about 56 per cent of the upcoming supply and warehouse space constitutes another 44 per cent.
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Between 2027 and 2030, an average annual supply of 1.2 million sq m of industrial space is expected to be completed, of which 59 per cent is single-user factory space with pre-committed demand.
This compares with an average annual supply of new completions of around one million sq m over the past three years.
In Q3, JTC awarded two tenders, one for a single-user development (6 Tuas Avenue 14) and another for a multiple-user development (5 Tuas Avenue 13). The tender for 6 Tuas Avenue 14 drew three bids, while the other site drew five bids.
JTC said that the bids received reflected “strong market interest in multiple-user sites”.
The tender for another single-user development at Jalan Besut was not awarded as the top bid of S$500 per square metre per plot ratio did not cross the reserve price.
In Q3, JTC allocated a total of 80,400 sq m of ready-built facilities (RBF) space to industrialists, which included 31,300 sq m of high-rise space and 44,300 sq m of land-based factory space.
Total RBF returns in Q3 were 105,800 sq m, with about 71 per cent due to natural expiries or companies consolidating their operations, noted JTC.