Singapore remains one of the most attractive logistics markets in Southeast Asia, with occupiers planning long-term expansion despite ongoing global trade uncertainty, according to CBRE’s 2025 Asia Pacific Logistics Occupier Survey.
The report found that 76 percent of logistics tenants across the region intend to expand their real estate footprint over the next three to five years.
Singapore ranked second among preferred Southeast Asian markets, just behind Vietnam, signaling strong confidence in its strategic value.
Based on responses from over 380 companies across Asia Pacific between March and April 2025, the survey highlights how occupiers are prioritizing operational efficiency, location strategy, and connectivity over cost alone.
In Singapore’s case, its reliable regulatory environment, modern infrastructure, and central positioning within Asia continue to attract global players.
Recent developments such as the PSA Supply Chain Hub @ Tuas and the expanded Tuas Port have enhanced the country’s logistics capabilities.
Global firms including DHL Supply Chain and DP World have opened new facilities, while investment flows into modern assets like Sunview Hub and DSV Pearl underscore sustained institutional interest.
Singapore also remains a critical node for sectors such as high-tech manufacturing and life sciences. With new logistics space coming online in 2025, occupiers are expected to revisit leases and address previously unmet demand.
Across the region, 69 percent of survey respondents expect business performance to improve within two years, down from 81 percent in 2023.
However, the majority are focused on long-term resilience, especially in areas with stable governance and supply chain access.
CBRE noted that while rental cost remains a factor, real estate typically accounts for only 3 to 6 percent of overall logistics expenses.
Occupiers are therefore advised to consider total cost of occupancy, including transportation, labor, and inventory flow, when evaluating locations.
Singapore’s logistics market continues to outperform regional peers by offering a rare combination of stability, efficiency, and connectivity.
While macroeconomic uncertainty persists, the city-state’s infrastructure pipeline and reputation as a neutral logistics hub give it a structural advantage in capturing demand from occupiers and investors alike.
Business News Asia
