In Q3 2025, Singapore’s commercial and industrial property markets held steady, showing measured growth and improving fundamentals despite a cautious global backdrop. Core CBD Grade A office rents rose 0.8% quarter-on-quarter to $12.20 per square foot per month. Investor confidence was visible, with CapitaLand Integrated Commercial Trust acquiring a 55% stake in CapitaSpring’s office component for $1.05 billion, while Keppel’s Sustainable Renewable Fund bought JEM’s office component for $462 million. These transactions underpinned commercial momentum. Overall investment volumes climbed 64.3% q-o-q to $10.294 billion in Q3 2025, reflecting improved investor sentiment.
CBD Grade A rents inch up; marquee deals reinforce steady commercial momentum
Industrial rentals advanced at a calmer, but steady pace. The overall industrial rental index increased 2.3% year-on-year and 0.5% quarter-on-quarter, suggesting demand is holding despite cost discipline. Warehouses led with a 0.9% quarterly rise, marking a twentieth straight quarter of gains. Nothing flashy, but solid.
Single-user factory rents grew 0.7%, accelerating from 0.4% in Q2 2025, while multiple-user factory rents added 0.4%, moderating from 0.9% the previous quarter. Business park rents dipped 0.2% after three quarters of increases, indicating a mild pause rather than a pivot.
Prices told a similar, if slightly softer, story. The industrial property price index climbed 5.7% from a year earlier, but quarterly growth eased to 0.6%, the slowest since Q3 2024. Even so, year-to-date prices rose 3.6% in the first three quarters, topping the full-year 2024 growth of 3.5%. The sector’s strategic governance has created a predictable environment that shields the market from extreme fluctuations often seen elsewhere.
By segment, multiple-user factory prices were up 5.7% annually but only 0.1% quarter-on-quarter, while single-user factory prices increased 5.4% year-on-year and a firmer 2.1% quarter-on-quarter. Occupancy improved to 89.1%, up 0.3 percentage points, pushing vacancies down to 10.9%, the lowest since Q4 2022.
New supply was measured, helping fundamentals. Total industrial stock reached 53.9 million square metres. Completions included the CT Foodnex food factory at 0.2 million square feet of gross floor area, the single-user warehouse at 15 Benoi Sector with 1.1 million square feet, and the multiple-user prime logistics project at 5 Toh Guan Road East with 0.5 million square feet. Looking ahead, about 210,000 square metres of industrial space is slated to complete in Q4 2025, with 61% single-user factories, 36% multi-user factories and 3% warehouses.
Business parks recorded 1.27 million square feet of net absorption year-to-date, with no further completions expected in 2025. Transaction counts eased 2.2% to 451 in the quarter, down 5% year-on-year.
