Demand from artificial intelligence and semiconductor-related industries helped support Singapore’s industrial property market during the third quarter of 2026, with prices and rents continuing to rise even as overall occupancy declined slightly.
JTC’s all-industrial rental index increased 0.5% from the previous quarter and 2.1% from a year earlier. The quarterly increase extended an uninterrupted sequence of rental growth lasting 24 quarters since the market’s third-quarter 2020 trough.
Industrial property prices rose 1% quarter on quarter and 4.2% year on year. Overall occupancy declined by 0.2 percentage point to 88.9%, partly because tenants left older factories scheduled for redevelopment and demand weakened in suburban business parks.
Singapore’s manufacturing sector expanded by an estimated 7.5% during the quarter, with AI-related industries contributing to activity. Global semiconductor demand also supported factory and warehouse requirements across Singapore and neighbouring manufacturing markets.
Warehouse rents rose 1% during the quarter, while occupancy stood at 89.7%. Business-park rents increased 0.1%, although occupancy fell by 0.7 percentage point to 77.2%. On an annual basis, rents rose 1.6% for multiple-user factories, 3.1% for single-user factories, 0.7% for business parks and 2.8% for warehouses.
Leasing growth for multi-user factories and warehouses remained measured, indicating that a significant portion of demand came from renewals and continuing space requirements rather than aggressive expansion.
JTC expects approximately 300,000 square metres of industrial space to be completed during the fourth quarter. Between 2027 and 2030, average annual completions are projected at 1.2 million square metres, with 59% comprising single-user factories backed by pre-committed demand.
Industrial investment sales increased from an estimated S$1.4 billion to approximately S$2 billion during the quarter. The value of transactions involving factories with no more than 30 years remaining on their leases almost tripled to S$972.2 million.
The figures place physical industrial capacity alongside computing, power and connectivity as a measurable component of Singapore’s expanding AI and semiconductor economy.
