Demand remains stable with garment sector driving significant leasing activity

• Warehouse demand remained stable in Q2 2026, driven by manufacturing, logistics and notably the garment sector, with large-scale new leases offsetting space returns from tenants from other sectors.
• The market experienced a slight slowdown after previous quarters with high absorption driven by warehousing needs for manufacturing activities and holiday seasons. Positive net absorption of 60,800 sqm in Q2 2026.

No new supply recorded in Q2 2026; total stock holds steady at 2.5 million sqm

• The Ready-Built Warehouse (RBW) market in the Southern region recorded no new supply in Q2 2026. Total supply across the region remained stable at approximately 2.5 million sqm of leasable floor space.
• BWID and Mapletree retained their leading positions in the market. Despite their dominant supply presence, both developers continue to actively prepare for upcoming projects for late 2026.

Average gross asking rent remains flat, while market yield holds a sideways trajectory

• Average asking rent held steady at USD 5.07 per sqm per month, with minimal quarterly movement below 0.1%, as developers maintained initial pricing strategies to preserve market competitiveness amid slight demand softening.
• Capital value, estimated based on gross asking rents, remained flat and stable at USD 761 per sqm. Growth slowed somewhat in Q2, with no significant change compared to the previous quarter.

Outlook: Strategic infrastructure nearing completion to unlock new demand drivers; market sentiment cautiously optimistic

• Over the last six months of 2026, the Southern logistics market is planned to welcome nearly 136,000 sqm of additional space in the former Dong Nai and Binh Duong provinces.
• Key infrastructure like Long Thanh Airport nearing completion will accelerate development. Amid easing Middle East tensions, cautious sentiment persists as domestic-focused logistics and manufacturing demand remains pivotal through year-end 2026.