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Asia Pacific industrial and logistics market shows signs of rebalancing
Rezul News/10716606
Singapore and India lead regional growth as supply and rental dynamics diverge across APAC
SYDNEY - Rezul -- Recovering consumer spending is expected to support economic momentum for the industrial and logistics sector over the next 12 to 18 months across major Asia Pacific markets, according to a new Colliers report.
Colliers' Asia Pacific Industrial & Logistics Market Insights September 2025 (https://www.colliers.com/en-xa/research/asia-pa...) report has found rising e-commerce activity and third-party logistics providers will continue to fuel demand as occupiers seek high-quality, efficient warehouse solutions.
"The Asia Pacific industrial and logistics sector is undergoing a strategic reset," Gavin Bishop, Managing Director, Industrial & Logistics, Colliers, said. "While leasing demand has moderated in some markets, the fundamentals remain strong. We are experiencing more demand from core-plus investors, with a further shift into core investments over the next 12 months.
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"Occupiers are increasingly prioritising high-specification, automation-ready assets that support operational efficiency and sustainability. This shift is driving rental growth in key markets and reinforcing the long-term value proposition of the sector."
While overall demand has moderated, the report found leasing activity remains buoyant in sectors driven by domestic consumption and supply chain transformation.
"Rising consumer demand in the region has driven the increase of leasing activity by third-party logistics providers and e-commerce sector," Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India, said. "Demand from occupiers is expected to continue across most of the markets in the region except from export-oriented companies who are facing uncertainty due to impact of tariffs on their profitability."
Singapore saw a 133% year-on-year increase in demand, largely driven by the absorption of newly delivered supply. India also posted strong results, with a 32.3% year-on-year rise in leasing activity during H1 2025 and a 13.9% increase compared to H2 2024. These figures reflect the continued strength of these markets and the strategic importance of high-quality logistics assets.
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Across the region, supply-side dynamics remain varied. Developers are increasingly adopting risk-averse strategies, particularly in markets with elevated vacancy rates. Supply pipelines are moderating in Australia, Japan and Singapore, helping to stabilise vacancy levels. In contrast, markets such as Mainland China and parts of India continue to face upward pressure on vacancies due to substantial new supply.
Rental growth across Asia Pacific is mixed, reflecting localised market conditions. Ahmedabad in India recorded the strongest year-on-year rental growth at 17.6%, followed by Pune (11.1%) and Brisbane (7.3%). These markets continue to benefit from robust demand and constrained supply, which is driving competition for space. Meanwhile, rents have declined in Mainland China and Hong Kong, where oversupply and softening demand are weighing on market performance.
Read the full report HERE (https://www.colliers.com/en-xa/research/asia-pacific-industrial-and-logistics-insights-september-2025).
Colliers' Asia Pacific Industrial & Logistics Market Insights September 2025 (https://www.colliers.com/en-xa/research/asia-pa...) report has found rising e-commerce activity and third-party logistics providers will continue to fuel demand as occupiers seek high-quality, efficient warehouse solutions.
"The Asia Pacific industrial and logistics sector is undergoing a strategic reset," Gavin Bishop, Managing Director, Industrial & Logistics, Colliers, said. "While leasing demand has moderated in some markets, the fundamentals remain strong. We are experiencing more demand from core-plus investors, with a further shift into core investments over the next 12 months.
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"Occupiers are increasingly prioritising high-specification, automation-ready assets that support operational efficiency and sustainability. This shift is driving rental growth in key markets and reinforcing the long-term value proposition of the sector."
While overall demand has moderated, the report found leasing activity remains buoyant in sectors driven by domestic consumption and supply chain transformation.
"Rising consumer demand in the region has driven the increase of leasing activity by third-party logistics providers and e-commerce sector," Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India, said. "Demand from occupiers is expected to continue across most of the markets in the region except from export-oriented companies who are facing uncertainty due to impact of tariffs on their profitability."
Singapore saw a 133% year-on-year increase in demand, largely driven by the absorption of newly delivered supply. India also posted strong results, with a 32.3% year-on-year rise in leasing activity during H1 2025 and a 13.9% increase compared to H2 2024. These figures reflect the continued strength of these markets and the strategic importance of high-quality logistics assets.
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Across the region, supply-side dynamics remain varied. Developers are increasingly adopting risk-averse strategies, particularly in markets with elevated vacancy rates. Supply pipelines are moderating in Australia, Japan and Singapore, helping to stabilise vacancy levels. In contrast, markets such as Mainland China and parts of India continue to face upward pressure on vacancies due to substantial new supply.
Rental growth across Asia Pacific is mixed, reflecting localised market conditions. Ahmedabad in India recorded the strongest year-on-year rental growth at 17.6%, followed by Pune (11.1%) and Brisbane (7.3%). These markets continue to benefit from robust demand and constrained supply, which is driving competition for space. Meanwhile, rents have declined in Mainland China and Hong Kong, where oversupply and softening demand are weighing on market performance.
Read the full report HERE (https://www.colliers.com/en-xa/research/asia-pacific-industrial-and-logistics-insights-september-2025).
Source: Colliers
Filed Under: Property
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