JTC Quarterly Market Report Q&A

• What was the overall industrial occupancy rate in Singapore in 4Q 2025? 

The overall occupancy rate for Singapore's industrial property market was 88.7% in the fourth quarter of 2025.

• Why did industrial occupancy rates decline in the final quarter of 2025? 

The decline of 0.4 percentage points was primarily caused by strong completions, which added 345,000 sqm of new stock and outpaced the current demand.

• What is the total available industrial stock as of end-2025? 

The total available industrial stock in Singapore reached 54.3 million sqm by the end of December 2025.

• Which industrial sector had the highest occupancy rate in 4Q 2025?

Multiple-user factories and Warehouses led the market with occupancy rates of 89.9% and 89.8% respectively.

• How did Business Parks perform in terms of occupancy in late 2025? 

Business Park occupancy remained relatively stable, recording a marginal increase of 0.1 percentage points to reach 77.1%

• What was the rental growth rate for industrial space in 4Q 2025? 

The rental index grew by 0.5% compared to the previous quarter, signaling a continued moderation in rental growth.

• How much did industrial property prices increase in 2025? 

The overall price index rose by 1.4% in 4Q 2025, ending the full year with a total increase of 5.0%.

• Which sector saw the strongest rental growth in 4Q 2025? 

The Warehouse sector recorded the highest quarterly rental growth at 1.1%.

• How does the 2025 rental growth compare to the previous year? 

The 2025 rental index rose by 2.4%, which was slower than the 3.5% increase seen in 2024 and marked the slowest annual growth since 2021.

• Did transaction volumes for industrial properties increase in 2025? 

While rental transaction volume rose by 2%, the volume of property sales (based on caveats lodged) fell by 3% compared to 2024.

• How many IGLS sites were awarded by the Government in 2025? 

A total of 10 IGLS sites (12.8 ha) were successfully awarded in 2025, double the number of sites awarded in 2024.

• What was the top bid for the Penjuru Road multiple-user site? 

The site at Penjuru Road, designated for food development, received a top bid of $1,677 psm ppr in December 2025.

• What new lease tenure policy was implemented for IGLS sites in 2025? 

As of March 2025, JTC grants an additional three years of lease for all new IGLS sites to support industrialist needs.

• Where were the awarded single-user IGLS sites located in 2025? 

Six single-user sites were awarded: three in the West region and three in the East region, including a self-storage site at Kaki Bukit.

• Is there a specific site awarded for self-storage use? 

Yes, a single-user site at Kaki Bukit was awarded in July 2025 specifically for self-storage use at $1,819 psm ppr

• How much new industrial supply is expected in 2026? 

Approximately 1.0 million sqm of new industrial space is expected to be completed in 2026.

• What is the projected industrial supply for 2027? 

The supply is expected to ramp up significantly to 1.6 million sqm in 2027.

• What percentage of 2026 supply is for Single-User Factories? 

About 53% of the 2026 upcoming supply consists of single-user factory space.

• How much warehouse space is being added to the market in 2026? 

Warehouses account for 29% of the 2026 supply, totaling approximately 0.3 million sqm.

• How does upcoming supply compare to historical demand? 

The projected average annual supply (2026–2028) is 1.1 million sqm, which is higher than the 3-year average annual demand of 0.6 million sqm

• How much RBF space did JTC allocate in 4Q 2025? 

JTC allocated 67,800 sqm of Ready-Built Facility (RBF) space to industrialists in the final quarter of 2025.

• What were the most popular newer high-rise developments for JTC allocation? 

About 39% of high-rise allocations occurred in newer developments: JTC Defu Industrial City, Bulim Square, and 1 North Coast.

• Why are companies returning RBF space to JTC? 

Approximately 54% of returns in 4Q 2025 were due to natural lease expiries or business consolidations.

• What was the total volume of RBF space returns in 4Q 2025? 

The total volume of returned RBF space was 103,900 sqm.

• What was the split between high-rise and land-based factory allocations? 

Allocations included 33,700 sqm of high-rise space and 29,300 sqm of land-based factory space.

• How does JTC define occupied versus vacant industrial space? 

Statistics on occupied and vacant space are based on physical occupation of the premises.

• Are premises considered occupied during official operation halts? 

Yes; since 2Q 2020, premises are considered occupied even if on-site operations were halted due to official restrictions.

• What is the future outlook for JTC rental rates in 2026? 

Barring a sharp downturn, JTC expects rental rates to continue to moderate as significant new supply enters the market.

• Where can I access more granular and historical JTC data? 

Users can visit the J-SPACE platform for more detailed and historical industrial property statistics.

• How does JTC monitor market demand? 

JTC monitors the market closely through allocation and return data and continues to support the needs of industrialists through various supply programs like the IGLS.

Alliance Facilities Management Pte Ltd is committed to upholding the highest standards of integrity, transparency, and ethical conduct. In the specialized field of Singapore industrial property consultancy, we recognize that our reputation is our most valuable asset.

As of January 2026, we have updated our pledge to align with the latest global governance standards and Singapore's stringent regulatory environment.

Our Zero-Tolerance Policy

We unequivocally reject any form of bribery, corruption, or unethical influence. Our commitment to a "clean business" ensures that every JTC application we handle is judged solely on its technical and economic merits.

• Compliance with the Prevention of Corruption Act (PCA)

Our operations are strictly governed by the Prevention of Corruption Act (Chapter 241) of Singapore. We do not offer, give, solicit, or accept any form of gratification—monetary or otherwise—to gain an unfair advantage in business dealings, lease assignments, or land tenders.

• Intellectual Honesty in JTC Consultancy

We pledge to provide "Intellectual Honesty" to our clients. If our feasibility study indicates that a project is unlikely to meet JTC’s 2026 productivity or solar mandates, we will advise the client candidly rather than proceeding with a non-compliant submission.

Pillars of Ethical Operation

• Full Operational Transparency

All business transactions are conducted with full transparency. We maintain meticulous records of all financial activities and consultancy steps, ensuring a verifiable "audit trail" for our clients and regulatory bodies.

• Protection of Client Confidentiality

We treat sensitive business data, including proprietary manufacturing processes and financial projections required for JTC submissions, with the highest level of data security and professional discretion.

• Avoidance of Conflict of Interest

AFM maintains strict internal controls to identify and mitigate potential conflicts of interest. We ensure that our advice remains objective and exclusively focused on the best interests of our clients and the integrity of the industrial land ecosystem.

To Our Clients & Partners

Trust is the cornerstone of our relationship. This pledge represents our unwavering commitment to maintaining your confidence by ensuring that all interactions are conducted with the utmost integrity. By working together with honesty, we achieve success that is both sustainable and honorable.

Danny Mak Lead Consultant & Director Alliance Facilities Management Pte Ltd