Regular readers will know that industrial property is close to my heart. One of my most memorable deals was achieving the highest PSF for a B1 industrial unit for a client — so whenever the quarterly industrial numbers come out, I read them carefully.
PropNex Research has just released its Q2 2026 Industrial Report (based on JTC data as at 23 July 2026). Let me summarise it here in plain language for my clients who own, rent, or are thinking of investing in industrial space.
The headline numbers
| Q2 2026 | |
|---|---|
| Industrial prices | +0.6% QOQ |
| Industrial rentals | +0.5% QOQ |
| Overall occupancy | 89.1% |
| Sales transactions | 505 deals (highest in two years) |
| Total sales value | ~$1.3 billion |
| Upcoming supply (2H 2026) | 4.4 million sq ft |
Prices are still rising, just more gently
The overall industrial price index rose 0.6% in Q2, slower than the 1.2% growth in Q1. The gains came mainly from single-user factories, where values grew 1.1% and reversed two quarters of decline. Multi-user factory prices inched up 0.4%.
At district level, the picture was uneven. District 22 (Jurong) had the strongest median price growth at +40.1% QOQ, while District 17 (Loyang, Changi) saw the steepest fall at -29.4%. A reminder that “the market” is really many small markets, and your own unit’s story depends very much on its location and building.
Rents have now risen for 23 straight quarters
Rents rose 0.5% in Q2 — the 23rd consecutive quarter of industrial rental growth since Q4 2020. Year-on-year, rents are up 2.1%.
Single-user factories led with +0.7%, followed by multiple-user factories (+0.6%) and warehouses (+0.5%). Business parks were the only segment to dip, easing 0.1%.
For median multi-user factory rents, District 18 (Tampines, Pasir Ris) jumped 12.3% to $3.48 psf pm, while District 17 (Loyang, Changi) fell 15.7% to $1.56 psf pm.
Occupancy is holding steady
Overall occupancy edged up 0.2 percentage points to 89.1%. This is quite encouraging, because about 1.38 million sq ft of new space was completed during the quarter and the market still absorbed it. Business parks improved the most (+1.2 ppt to 77.9%), while warehouses stayed flat at 89.4%.
Sales activity bounced back strongly
There were 505 industrial transactions in Q2 — up 26.3% from Q1, and the highest quarterly volume in two years. Total value came in at about $1.3 billion, lower than Q1’s $1.8 billion, so we are seeing more deals but at smaller average sizes.
New strata launches did a lot of the heavy lifting. CT Gold in MacPherson (66 units, freehold) sold out within two days of launch in early May. Gate+ in Boon Lay saw caveats for 86 of its 265 units. In July, Generations @ Tannery was fully sold at launch, and Space Nova at New Industrial Road sold around 90% of its units when it launched in early August.
The biggest single deal was the $72 million sale of Hwa Yew Industrial Building in Mandai, reportedly to Soilbuild Group. There was also ESR REIT’s divestment of eight industrial assets totalling more than $338 million.
Leasing : more deals, smaller value
3,199 tenancies were signed, up 7.9% from Q1 (though down 4.8% from a year ago). Interestingly, total rental value fell 15.8% to $25.2 million — again pointing to more transactions of smaller units.
What is driving all this
Singapore’s economy grew 5.7% year-on-year in Q2, and manufacturing did especially well at +12.2%, accelerating from 8.0% in Q1. The strength came from electronics and precision engineering, riding on AI-related demand for semiconductors and semiconductor equipment. Chemicals and biomedical manufacturing were weaker, with chemicals affected by feedstock disruptions from the Middle East conflict.
The outlook for 2H 2026
PropNex expects the second half to be shaped by a more turbulent external environment — the renewed Middle East conflict and a fresh round of US tariffs, with duties on Singapore’s exports to the US raised to 12.5% from 10%, affecting roughly one-third of our exports there. Interest rate cut expectations have also been pushed back.
Even so, their view is that manufacturing should stay resilient on AI-driven investment, investment activity should remain healthy, and rents and occupancies should stay firm given manageable new supply. About 4.4 million sq ft of new industrial space is due in 2H 2026, of which 53% is single-user factory space and 47% warehouse.
My thoughts for industrial owners and investors
Three things I would gently highlight to my clients :
(1) Rents rising for 23 quarters straight is a strong run, but the gains are modest each quarter now. If you are an owner relying on rental income, plan on steady rather than spectacular.
(2) The district numbers swing wildly quarter to quarter, especially in smaller markets with few transactions. Please do not price your unit based on one headline percentage. Look at actual comparable transactions in your own building and estate.
(3) Strata industrial launches are selling very well. If you are considering one, do your sums on financing, tenancy prospects and holding power before you get caught up in the launch-day excitement.
If you own an industrial property and would like to understand what these numbers mean for your specific unit — or you are thinking of buying, selling or renting out industrial space — do drop me a message. I am always happy to sit down and go through the figures with you properly.
Source : PropNex Research Q2 2026 Industrial Report, based on JTC data as at 23 July 2026. Figures are for reference and education only and are not investment advice.
