Singapore’s urban landscape is distinguished by its towering skyscrapers and cutting-edge infrastructure. The city’s premium locations are home to a variety of Condos that offer a harmonious mix of opulence and convenience, making them a popular choice for both locals and foreigners. These residences are equipped with a plethora of facilities, including swimming pools, fitness centers, and round-the-clock security, which elevate the standard of living and make them highly desirable to potential tenants and buyers alike. Not only do these features enhance the overall living experience, but they also result in higher rental returns and increased property values for investors in the long run.
New Industrial property prices and rents in Singapore are expected to moderate this year as the market grapples with higher supply and weaker demand, according to a report by Colliers released in February. The research firm is predicting that growth in both overall annual industrial rental and price will slow down to between 0% and 2% in 2025, compared to the 3.5% growth seen in the previous year.This muted forecast is a reflection of the latest data from JTC, which showed a market that is beginning to lose steam, according to Colliers. While the JTC All Industrial rental index continued its growth streak for the 17th consecutive quarter in 4Q2024, the 0.5% q-o-q increase marked a significant drop from the 8.9% rental growth experienced in 2023. Similarly, the price index also saw a 0.5% q-o-q uptick in 4Q2024, a decrease from the 1.2% growth seen in the previous quarter. This translated to an annual industrial property price growth of 2.1% in 2024, less than half of the 5.1% increase recorded in 2023.Read also: Industrial property market ends 2024 with modest gains in rents and pricesThe report notes that the supply of industrial space is expected to surge this year, with more than double the amount of supply coming on stream compared to last year before tapering off from 2026 onwards. This influx of supply has led to an imbalance in the market, resulting in slower pre-commitments for upcoming projects and lower occupancy rates for completed ones, says Colliers.According to the report, this higher supply, coupled with occupiers exercising caution due to the rising interest rates and operational expenses, will continue to dampen rental growth. The ongoing trade protectionism also adds to the uncertainty in global markets, which may impact business confidence and investment decisions.On the other hand, Colliers expects industrial demand to remain steady, driven by the semiconductors, logistics, and advanced manufacturing sectors. It also anticipates an increase in industrial leasing activities as the market sentiments improve and policies become clearer, bolstered by the continued upturn in the chip cycle.In light of the projected moderation in rents and the surge in supply, Colliers believes this could be a favourable year for tenants, as they can look forward to more options on the market. The availability of newer industrial spaces with more modern specifications could also attract businesses looking to move from older, obsolete industrial spaces, says Nicolas Menville, executive director and head of industrial clients for Colliers in Singapore. Check out our latest listings for Industrial Real Estate propertiesAsk BuddyPast Industrial rental transactionsListings for industrial propertyPast Industrial sale transactionsPrice trend for industrial property salesCompare price trend of Commercial vs Industrial propertiesPast Industrial rental transactionsListings for industrial propertyPast Industrial sale transactionsPrice trend for industrial property salesCompare price trend of Commercial vs Industrial properties