2025-04-20-莱坊-Singapore_Industrial_and_Logistics_Market_Update_Q1_2025_2页_925kb

Singapore Industrial Market Summary: Q1 2025

Key Trends

• Industrial leasing declined by 10.3% year-on-year and 1.1% quarter-on-quarter.
• Unit rents across all industrial property types remained stable at the 25th median and 75th percentiles.
• Total industrial sales volume decreased 33.9% quarter-on-quarter to S$680.9 million, with a year-on-year decline of 0.4%, but a year-on-year increase of 2.0%.

Economic Context

• Singapore's GDP growth for 2025 was lowered to 0% to 2%, down from the previous forecast of 1% to 3%.
• Manufacturing output saw mixed results, with overall expansion and resilient clusters like precision engineering and transport engineering, but quarter-on-quarter shrinkage highlighted by global tariff uncertainties from the US.
• The US tariff announcements have increased global trade tensions, leading to caution in industrial decisions and potential delays in relocations and expansions.

Impact of Global Trade War

• US tariffs and retaliatory measures are expected to slow global trade, affecting Singapore's export-dependent sectors such as manufacturing, electronics, and logistics.
• Immediate effects include reduced transaction volumes and conservative business strategies as enterprises pause decision-making.
• Despite challenges, Singapore remains an attractive hub due to large construction projects like Changi Airport Terminal 5 and Marina Bay Sands expansion.

Future Outlook

• Industrial lease growth could range from 0% to 2% for 2025, influenced by ongoing volatility.
• JTC's enhancements to the industrial land lease framework, including extended lease terms and flexibility, aim to support businesses amid uncertainty.
• Opportunities exist in construction and manufacturing sectors, with demand for spaces to house workers in dormitories increasing.