# Short leases reshape Singapore industrial property demand

- **Source:** Real Estate Asia
- **Published:** 2026-09-22T03:38:58.000Z
- **Author:** shiena@charltonmediamail.com
- **Original:** https://realestateasia.com/videos/short-leases-reshape-singapore-industrial-property-demand
- **Topics:** Commercial & Industrial, Transactions & Deals

## Featured rationale

Lease decay is segmenting demand, potentially widening pricing differences as longer-tenure assets attract investors while short leases depend increasingly on location and operational utility.

## AI summary

Singapore strata industrial transactions rose 19.7% in the second quarter, but buyers increasingly avoid properties with 15 years or less remaining on their leases.

## Original article

Buyers are becoming more selective as lease decay weighs on pricing, while owner-occupiers may still accept shorter tenures for operational flexibility.

Singapore’s industrial property market is seeing stronger transaction activity, but shortening lease tenures are increasingly influencing which assets remain investable and how buyers price them.

Strata industrial transactions rose 19.7% in the second quarter, yet Alan Cheong, Executive Director of Research and Consultancy at Savills Singapore, said buyers are increasingly avoiding properties with limited lease life.

“Buyers are now avoiding leases that are running out, particularly those that have 15 years or less,” Cheong said.

New industrial leases issued by JTC are generally capped at 30 years, with some shorter than that. Cheong said assets with around 20 years or more remaining can still attract buyers, but lease decay becomes more pronounced as tenure falls.

Properties with less than 10 years remaining face a smaller buyer pool, although demand does not disappear entirely. Some owner-occupiers may still acquire short-lease assets for temporary operational needs such as storage, inventory, or office use.

Location can also offset part of the tenure disadvantage. Centrally located properties may retain greater appeal, while larger premises on the outskirts can still attract occupiers that need space for equipment or inventory.

Owner-occupiers also assess short leases differently from investors. Cheong said businesses may accept faster lease decay if buying a cheaper property frees capital for use elsewhere in the company.

That calculation can make shorter-tenure assets commercially viable when operating returns exceed the loss in property value.

For Singapore industrial landlords and investors, the market is becoming more segmented: longer-tenure assets retain broader investment appeal, while shorter leases increasingly depend on location, operational usefulness, and the buyer’s ability to justify lease decay through business returns.

## Chinese translation

> Translation model: grok_cli

### 短地契重塑新加坡工业地产需求

随着地契损耗拖累定价，买家变得更加挑剔，而自用业主为了运营灵活性，仍可能接受较短的地契年期。

新加坡工业地产市场的交易活动更为活跃，但地契年期缩短正日益影响哪些资产仍具投资价值，以及买家如何为它们定价。

分层工业物业交易在第二季度上升19.7%，然而第一太平戴维斯新加坡（Savills Singapore）研究与咨询执行董事Alan Cheong表示，买家正日益避开地契剩余年限有限的物业。

“买家现在正避开即将届满的地契，尤其是剩余年期为15年或更短的地契。”Cheong说。

裕廊集团（JTC）签发的新工业地契一般以30年为上限，部分则短于这一年限。Cheong表示，剩余年期约20年或更长的资产仍能吸引买家，但随着年期下降，地契损耗会变得更加明显。

剩余年期不足10年的物业面对更小的买家群体，尽管需求并未完全消失。部分自用业主仍可能为仓储、存货或办公等临时运营需要而购入短地契资产。

地段也可以抵消部分年期劣势。位于中心地段的物业可能保持更大吸引力，而位于外围、面积较大的场所仍能吸引需要设备或存货空间的用家。

自用业主评估短地契的方式也与投资者不同。Cheong表示，如果购入价格更低的物业能把资金释放出来供公司其他用途使用，企业可能会接受更快的地契损耗。

当经营回报超过物业价值损失时，这种计算可以使年期较短的资产在商业上仍然可行。

对新加坡工业地产业主和投资者而言，市场正变得更加分化：较长年期的资产保持更广泛的投资吸引力，而较短地契则日益取决于地段、运营实用性，以及买家能否以业务回报证明地契损耗的合理性。