JTC Quarterly Market Report Q&A: A Comprehensive Guide

Alliance Facilities Management Pte Ltd: 

• ✅ Established in 2011, Alliance Facilities Management Pte Ltd has been Singapore’s trusted specialist in JTC Lease Assignment Applications, JTC Lease Renewal Applications, JTC Anchor Tenant Applications, and related industrial property services. We help clients navigate Singapore's complex industrial real estate landscape with clarity, compliance, and confidence.

• ✅ With over 100 successful JTC submissions valued at more than SGD 1 billion, our proven track record and deep regulatory expertise have made us a leading name in JTC consultancy. Our team works with a broad spectrum of clients, including listed companies, MNCs, and SMEs—delivering tailored support aligned with JTC’s evolving policies and business requirements. Read More >>

Why Choose Alliance Facilities Management? 

• ✅ Proven Results: 100+ JTC approvals and counting

• ✅ Success-Based Fees: No upfront charges—we only get paid when you do

• ✅ Expertise in JTC Guidelines: We understand what JTC looks for and how to present your case

• ✅ Comprehensive Documentation: Business plans, fixed asset justifications, job creation strategies, and compliance support

• ✅ Full-Spectrum Support: From pre-submission to post-approval coordination

Industries We Serve:

We’re proud to serve a wide array of industries and business sizes, including:

• ✅ Listed Companies (19%)

• ✅ Multinational Corporations (16%)

• ✅ Small and Medium Enterprises (65%)

Our diverse client base spans:

Sector Client Share

Construction & Engineering 23%

General Manufacturing 13%

Food Production 12%

Marine & Shipbuilding 12%

Distribution & Warehousing 11%

Chemical & Gas 8%

Precision Engineering / Cleanroom 6%

Logistics & Transportation 6%

Waste Management / Automotive 5%

Retail & Distribution 4%

We tailor our services to the unique challenges and opportunities of each sector.  Read More >>

Success-Based JTC Consultancy You Can Trust

Our business model is simple: we win only when you do. That means no upfront fees. Our reward is directly tied to securing JTC's approval for your application. If, during our initial assessment, we believe the project is unlikely to be approved, we will advise you candidly before proceeding. Let us know how we can help.  Read More >>

Answer: 

• The overall industrial property occupancy rate rose to 89.1%, up 0.3 percentage points quarter-on-quarter, reflecting steady demand for industrial space despite a more cautious economic climate. The increase indicates that most of the space vacated in previous quarters has been progressively absorbed, especially in newer developments and logistics clusters.

Answer: 

• The slight increase in occupancy was largely driven by ongoing tenant expansions, strong leasing in logistics and manufacturing sectors, and a reduction in total stock due to the planned demolition of older buildings under JTC’s land rejuvenation programme. This strategic land recycling helps maintain a balance between fresh supply and functional demand.

Answer: 

Segment-wise changes:

• Business Parks: +0.3%-pt to 77.0%, driven by relocations into Punggol Digital District and one-north.

• Single-User Factories: +0.1%-pt to 89.1%, reflecting steady demand from manufacturing SMEs.

• Warehouses: +0.8%-pt to 89.6%, rebounding from new completions absorbed in earlier quarters.

• Multiple-User Factories: Held steady at 91.0%, showing sustained demand for modular, high-density industrial solutions.

Answer: 

• The price index for all industrial space rose by 0.6% QoQ and 5.7% YoY. While price growth remains healthy, the pace has moderated compared to earlier quarters, pointing to greater price stability. This may appeal to investors seeking long-term capital appreciation without exposure to sharp volatility.

Answer: 

• The rental index rose by 0.5% QoQ and 2.3% YoY, with growth easing slightly from previous quarters. This moderation suggests that while leasing activity is active, tenants are becoming more price-sensitive amid broader macroeconomic uncertainties and rising operating costs.

Answer: 

• Rental transaction volume declined by 4% YoY, suggesting a market shift towards lease renewals and consolidation rather than aggressive expansion. Tenants are focusing on operational efficiencies and strategic relocations to optimize costs.

Answer: 

• Singapore’s total available industrial stock stood at 53.9 million sqm, down slightly from 54.0 million sqm in 2Q 2025 due to net demolitions. This supports JTC’s strategy of curating future-ready estates and gradually retiring outdated assets.

Answer: 

• Warehouse occupancy increased to 89.6% (+0.8%-pt), and rental rates grew by 0.9% QoQ, driven by robust demand from e-commerce, 3PLs, cold chain, and port-centric logistics firms. This rebound indicates absorption of prior supply from major completions such as World Gateway 2.

Answer: 

• Single-user factory space remains in steady demand. The price index rose 2.1% QoQ, and the rental index increased 0.7% QoQ, while occupancy rose to 89.1%. This format appeals to mid-sized manufacturers and precision engineering firms requiring dedicated infrastructure.

Answer: 

• Occupancy remains high at 91.0%, while the price index edged up 0.1% QoQ and rental index by 0.4% QoQ. Demand is driven by SMEs, light industrialists, and digital service providers who value the flexibility and affordability of shared facilities.

Answer: 

• Business park occupancy improved to 77.0%, though the rental index dipped by 0.2% QoQ. This minor rental decline reflects tenant relocations into newer digital nodes, like Punggol, and shifting preferences away from legacy park developments.

Answer: 

Over the past 3 years:

• Average annual supply: ~0.8 million sqm

• Average annual demand: ~0.6 million sqm

This gap highlights the importance of calibrated land release and rejuvenation of older estates to avoid structural oversupply.

Answer: 

• Approximately 0.2 million sqm of new space is expected to be completed in the final quarter of 2025. Most of this comprises single-user factory and warehouse space, reflecting a more controlled and manageable pipeline.

Answer: 

• In 2026, about 1.2 million sqm is expected to be completed. A significant portion will consist of built-to-suit developments and government-initiated industrial infrastructure, such as logistics parks and next-generation RBFs.

Answer: 

• Between 2026 and 2028, the market will see around 3.6 million sqm of new supply—averaging 1.2 million sqm annually. Developers and occupiers will need to assess timing and location carefully to avoid exposure to oversupplied submarkets.

Answer: 

• Sales transaction volume, based on caveats lodged, declined 5% YoY in 3Q 2025. This suggests investor caution, possibly due to elevated interest rates and slower capital recycling. Buyers are adopting a wait-and-see strategy or shifting toward leasehold assets with better yields.

Answer: 

• JTC allocated 59,500 sqm in 3Q 2025. This included high-rise factory units and land-based RBFs across mature and emerging industrial estates. These units are in high demand among SMEs and consolidating enterprises.

Answer: 

• A total of 80,300 sqm was returned, of which 68% stemmed from natural lease expiries or operations consolidation—not business failure—indicating a healthy reshuffling rather than tenant distress.

Answer: 

Top RBF allocations were made in:

• Bulim Square

• JTC Defu Industrial City

• 1 North Coast

These newer estates offer modern layouts, green features, and proximity to sectoral clusters, making them highly competitive.

Answer: 

• As of end-September 2025, there were 608 strata units (totaling 105,477 sqm) still available for sale. A large portion (91%) are below 200 sqm, indicating demand from small businesses and self-occupiers.

Answer: 

• CT FoodNex, a food-zoned, strata-titled multiple-user factory, obtained Temporary Occupation Permit (TOP). It caters specifically to F&B manufacturers and food-tech companies, further supporting the government’s agri-food resilience plans.

Answer: 

• All six IGLS (Industrial Government Land Sales) sites were successfully awarded, split evenly across single-user and multiple-user developments. This reflects healthy interest from both industrialists and developers despite a slowing broader market.

Answer: 

• Ubi Avenue 1 – Awarded at $845 psm ppr

• Kaki Bukit Avenue 5 – Awarded at $1,819 psm ppr

• Penjuru Lane – No bids received, indicating site-specific constraints or timing mismatch.

Answer: 

• Pioneer Road – $1,257 psm ppr

• Tukang Innovation Drive (Plot B) – $2,034 psm ppr

• Sengkang West – $2,692 psm ppr (highest for the quarter and 1st site in NE region)

Answer: 

• As of 2025, all IGLS sites benefit from a +3-year lease extension (e.g. 30→33 years), increasing developer interest and improving ROI for capital-intensive industrial builds.

Answer: 

• Sengkang West was awarded at $2,692 psm ppr, making it the highest awarded price this quarter and the first IGLS site in Singapore’s North-East—reflecting strong demand for decentralised industrial nodes.

Answer: 

Strong bidding in multiple-user segments reflects:

• Sustained SME-driven demand

• Developers’ confidence in strata-sale or leasing potential

• Strategic move toward cluster-specific industrial hubs

Answer: 

• Occupancy rates are expected to remain stable, supported by tight land releases and modern demand. However, rental growth is likely to moderate, especially in segments where new supply is rising (e.g., warehouses, food-use factories).