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 occupancy rate fell slightly to 88.8%, down from 89.0% in 1Q 2025. While the decline appears marginal, it reflects new completions entering the market, such as World Gateway 2 (warehouse) and JTC Space @ Ang Mo Kio (multiple-user factory), which added substantial space that was not immediately occupied. Despite the dip, the market has maintained stable occupancy around 89% since 2023, highlighting underlying demand resilience.

Answer: 

• The price index for all industrial space increased by 1.4% quarter-on-quarter (QoQ) and 5.5% year-on-year (YoY), indicating a firm upward trajectory in capital values. This growth outpaced the rental index, suggesting that investor appetite and asset values are appreciating faster than leasing revenue—potentially attractive for long-term investors seeking capital gains in industrial real estate. 

Answer: 

• The overall rental index rose 0.7% QoQ and 2.0% YoY, with multiple-user factories (+2.2% YoY) and business parks (+2.3% YoY) leading gains. However, this is the slowest YoY increase in rental growth since 2021, suggesting a cooling in rent escalation after several strong quarters—good news for tenants, and a signal for landlords to sharpen value propositions

Answer: 

• Total available industrial stock in Singapore reached 54.0 million square metres by the end of 2Q 2025. This includes space across single-user and multiple-user factories, warehouses, and business parks, reflecting ongoing industrial expansion and government support through infrastructure readiness.

Answer: 

• Notable completions impacting occupancy include:

World Gateway 2 (warehouse) – large footprint logistics space added.

JTC Space @ Ang Mo Kio (multiple-user factory) – modern stacked factory space.

These additions contributed to the temporary softness in occupancy as tenants take time to fill new supply.

Answer: 

• Business parks saw a strong 0.8%-pt increase in occupancy, rising to 76.7%, driven by a surge in demand at Punggol Digital District (+55,000 sqm). This reflects rising demand from high-tech, digital, and advanced manufacturing sectors, reinforcing business parks as hubs for knowledge-based and innovation-driven industries.

Answer: 

• While occupancy dipped to 91.0% (-0.3%-pt), rental index grew by 0.9% QoQ and 2.2% YoY, indicating stable leasing performance. Price index growth (+1.7% QoQ) suggests ongoing investor interest. These properties remain attractive for SMEs and light industrialists due to flexibility and lower capital outlay.

Answer: 

• Occupancy improved to 89.0% (+0.4%-pt QoQ), reflecting consistent demand from end-users. The price index rose 0.4% QoQ and 3.5% YoY, and rental index grew modestly (+1.1% YoY). These facilities are often used by larger industrialists or those requiring high-power capacity, dedicated loading bays, and custom fit-outs

Answer: 

• Warehouse occupancy dropped sharply to 88.8% (down 1.7%-pt QoQ and 2.5%-pt YoY), mostly due to the completion of World Gateway 2. Despite this, warehouse rents increased 0.4% QoQ and 1.9% YoY, supported by continued demand from logistics, e-commerce, and 3PL operators.

Answer: 

• Rental transactions increased by 8% year-on-year, signaling robust leasing activity despite slower rental growth. This suggests healthy market churn and continued tenant movement across sectors adapting to post-pandemic operating models.

Answer: 

• Sale transaction volume, estimated via caveats lodged, fell 18% YoY in 2Q 2025. This could signal cautious buyer sentiment, rising borrowing costs, or wait-and-see approaches amid new supply entering the market.

Answer: 

• An estimated 300,000 sqm of new industrial space is expected to be completed, with the composition as follows:

48% Single-user factory

27% Multiple-user factory

25% Warehouse

This pipeline is moderate compared to past surges, supporting a stable leasing market.

Answer: 

• A total of 2.9 million sqm is expected to be delivered from 2026–2027, translating to an average annual supply of 1.3 million sqm, exceeding the historical average. Tenants and investors should watch for potential oversupply risks in certain micro-markets.

Answer: 

• From 2022 to 2024, the industrial market saw an average annual supply of 0.9 million sqm and demand of 0.6 million sqm. The current pipeline exceeds this, suggesting a more cautious leasing and investment strategy will be prudent.

Answer: 

• Barring a major economic downturn, JTC expects occupancy and rents to remain stable, supported by calibrated new supply and continued demand in logistics, precision engineering, and high-tech manufacturing.

Answer: 

• Four tenders closed:

✅ Plot 3 Jalan Papan (Single-user): $535 psm ppr, 3 bids

✅ Gul Drive (Single-user): $703 psm ppr, 7 bids

✅ Tukang Innovation Drive (Multiple-user food use): $1,753 psm ppr, 5 bids

❌ Penjuru Road (Multiple-user): Not awarded due to low bid

Answer: 

• Yes. As of March 2025, JTC grants an additional 3 years of lease tenure on all new IGLS sites, enhancing lease appeal and allowing tenants greater investment runway.

Answer: 

JTC allocated 41,200 sqm of RBF space, including:

• 32,300 sqm high-rise

• 4,900 sqm land-based factories

This was part of its ongoing strategy to provide flexible, ready-to-move-in space to industrialists.

Answer: 

• RBF returns totaled 127,600 sqm, with 81% due to natural lease expiries or consolidation—indicating healthy portfolio management by tenants.

Answer: 

High allocations occurred at:

• JTC Space @ Tuas

• Tuas Biomedical Park

• Bulim Square

• JTC Logistics Hub @ Gul

• TimMac @ Kranji

These are strategically located, newer developments attracting demand from emerging industries.

Answer: 

As of end-June 2025:

• 760 units are available

• Totaling 132,078 sqm

• 91% of units are below 200 sqm, catering to SMEs

Answer: 

• The predominance of units below 200 sqm reflects strong SME demand, particularly for owner-occupied production or storage spaces in B1-zoned estates.

Answer: 

Moderation is driven by:

• High base effects from earlier years

• Stable but unspectacular demand

• Tenants resisting further rent increases due to margin pressures.

Answer: 

Investors may find value in:

• Multiple-user factories with capital appreciation upside

• Warehouses near Tuas Port or airport

• Long-term leases on B2 zoned land with infrastructure upgrades

Answer: 

• Key growth zones include Punggol Digital District, Tuas Biomedical Park, Jurong Innovation District, and Gul Logistics Cluster, where new completions and tenant movements are concentrated.

Answer: 

• Demand rose significantly, with 55,000 sqm of new take-up in Punggol alone in 2Q 2025—driven by tech firms, clean energy startups, and digital services companies.

Answer: 

• High-rise RBFs offer lower upfront investment, flexibility in operations, and location accessibility for SMEs—making them highly sought-after, especially in estates like Tuas, Defu, and Kranji.

Answer: 

• Highly competitive—Gul Drive received 7 bids, and Tukang Innovation Drive (food-use) received 5 bids, showing strong demand for strategically located industrial land.

Answer: 

• The top bid for Penjuru Road came in below the reserve price, indicating cautious sentiment for certain multiple-user developments despite overall demand.

Answer: 

• The 3-year lease extension for new IGLS sites improves project feasibility and enhances appeal for developers planning large-scale capital investment.

Answer: 

• With 2.9 million sqm of space coming onstream by 2027, there is a risk of short-term oversupply, especially if economic conditions weaken or tenant demand slows.

Answer: 

Core drivers include:

• Logistics & e-commerce

• Advanced manufacturing

• Biomedical & clean tech

• Food processing

• Digital services

Answer: 

• Yes. Rents in the East and Central regions remain more resilient, while West region rents are more volatile due to large-scale completions and relocation activity

Answer: 

• The segment is gradually shifting toward hybrid uses, with tenants from AI, robotics, and engineering tech increasingly occupying business park-grade assets in locations like one-north and Punggol.

Answer: 

• Awarded IGLS prices ranged from $535 to $1,753 per sqm ppr, depending on zoning, plot use, and tenure—higher bids were observed for multiple-user and food-use plots.

Answer: 

• Industrial rents remain lower and more stable than office or retail, offering greater value retention during economic uncertainty and less exposure to consumer volatility.

Answer: 

• Automation is increasing demand for modern, high-ceilinged, power-redundant spaces—especially in logistics, food processing, and semiconductor sectors.

Answer: 

• Yes—particularly for owner-occupiers in the B1 category (light industry), where flexibility, capital preservation, and long-term occupancy certainty are priorities.

Answer: 

• Newer assets with modern specs and integrated infrastructure are pulling up capital values, leading to pricing divergence between older and newer stock.

Answer: 

• Review footprint consolidation options

• Consider newer RBFs for productivity upgrades

• Secure longer-term leases where rents are stabilising

• Explore co-location in sector-focused clusters

These strategies help align real estate use with operational and financial goals.