Singapore’s economy expanded by 4.4% in 2024, a strong acceleration from 1.8% in 2023. This growth was driven by the wholesale trade, finance & insurance, and manufacturing sectors. The manufacturing sector rebounded 4.3% in 2024, reversing a 4.2% contraction in 2023. The electronics and transport engineering clusters were key drivers, benefiting from rising global demand, artificial intelligence (AI), cloud computing, and advanced digital infrastructure.

Looking ahead, Singapore’s GDP growth forecast for 2025 is maintained at 1.0% to 3.0%, with the electronics cluster expected to remain robust due to sustained demand for semiconductor chips.

Strata Industrial Transactions: A Strong Year in 2024

The strata-titled industrial market saw a 10.2% increase in transaction volume from 1,594 in 2023 to 1,756 in 2024. Transaction values grew 10.5%, from $1.8 billion to $2.0 billion, indicating strong investor confidence.

Among the top transactions, the largest freehold sale was a 15,608 sq. ft unit at Apex @ Henderson, transacted for $14.5 million ($929 psf) in February 2024. Another freehold unit at Amtech Building, Sin Ming Road, was sold for $12.5 million ($931 psf) in June 2024. Leasehold industrial sales in Tuas South Connection dominated the list, with the largest leasehold sale at 6X Tuas South Link 1, transacted at $9.2 million for 28,858 sq. ft in June 2024.

Industrial Rental Trends: Resilience Amid Evolving Demand

The industrial rental market remained resilient, driven by logistics, advanced manufacturing, and high-tech industries.

This reflects continued demand for industrial spaces, though tenants are becoming more selective due to higher costs.

Outlook: Stability and Growth Opportunities

Industrial property prices are expected to remain stable in 2025, influenced by macroeconomic factors, supply pipelines, and demand from key industries. Singapore will see the completion of 1.2 million square meters of new industrial space in 2025, with an additional 2.1 million square meters in 2026-2027.

The electronics sector remains optimistic, driven by semiconductor demand for AI applications. Despite uncertainties surrounding U.S. trade policies and global economic fluctuations, business sentiment remains positive.

Freehold Investment Opportunity

Freehold industrial assets remain highly sought after, with CT Pemimpin standing out as a strategic investment opportunity due to its prime location and connectivity to key business hubs.

Singapore’s industrial market is poised for continued resilience, supported by structural demand drivers and a strong investor base.

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Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg