Commentary on JTC Q3 2026 Stats

Overall industrial demand remains resilient supporting continued rental and price growth in Q3 2026. The Purchasing Managers’ Index (PMI) rose to 51.7 points in September, or the highest reading since October 2018 and marking the fourteenth consecutive month of expansion. Total manufacturing output expanded by 15.4% yoy in August, led by the precision engineering cluster, signifying the twelfth consecutive month of growth.

Overall industrial rents rose by 0.5% qoq in Q3 2026, or the 24th consecutive quarter of increase, which was a similar pace of growth as in the previous quarter. A broad-based increase in rental growth was recorded across all industrial segments. Warehouse recorded the strongest rental growth of 1.0% qoq in Q3 2026, followed by single-user factory rents which rose by 0.7% qoq. Both business park and multiple-user factory registered moderate rental growth of 0.1% qoq and 0.3% qoq respectively in Q3 2026.

Overall industrial vacancy rates rose by 0.2% points to 11.1% in Q3 2026, as net supply outweighed net demand in the quarter. Only warehouse recorded lower vacancy rate of 10.3% in Q3 2026, while vacancy rates of the other industrial segments increased on a quarterly basis. Notably, negative net demand was recorded across all industrial segments. Multiple-user factory and single-user factory vacancy rates rose to 9.7% and 10.9% respectively in Q3 2026, which was likely due to more spaces being given up at older developments which are set to be redeveloped. Business park vacancy rate increased to 22.8%, driven by the suburban business park which continues to face vacancy pressure. Based on the basket of properties tracked by Cushman & Wakefield Research, city fringe business park vacancy rates have declined to 6.6%, or the lowest level since Q4 2023, though it may face pressure from emerging secondary space over the coming quarters.

Prime logistics continues to perform well. Occupiers are seeking modern prime logistics stock that enables more efficient operations, and demand remains healthy, as seen from the take-up of newer prime logistics developments. With no new prime logistics supply coming online in 2026 and the 2025 completions now mostly full, prime logistics vacancy has fallen to about 4.9%. Amid the AI capex boom, we are also seeing growing demand for logistics space from companies in the electronics sector as they expand in Singapore, a global semiconductor hub.

In Q3 2026, overall industrial prices edged up by 1.0% qoq, or the tenth consecutive quarter of increase, accelerating from 0.6% qoq growth in Q2 2026. Industrial volumes (based on caveats lodged) fell by 12.6% qoq to 458 transactions in Q3 2026, though it remained higher compared to the quarterly average of 310 units in 2019. Majority of the transactions were freehold strata developments, highlighting keen investor interest in such assets.