Domestic-focused tenants drive primary demand

• The logistics market demonstrated resilience throughout the year despite prevailing global challenges, particularly those related to U.S. tariffs. Q4 net absorption reached over 97,600 sqm, pushing 2025’s total more than 70% above 2024 levels.
• Leasing activities accelerated towards the year-end—typically the most dynamic season—driven by heightened consumer demand. Domestic market-focused tenants, especially the 3PL group, remained the key demand drivers during the quarter.

New supply has been introduced in the former Long An province

• The Southern RBW market concluded 2025 with the launch of a large-scale project developed by BWID at Thuan Dao IP, formerly Long An province. The new facility offers approximately 120,000 sqm of NLA and features a two-storey design with ramp access.
• By the end of Q4 2025, total prime warehouse supply had reached roughly 2.4 million sqm, marking an 11.2% y-o-y increase. BWID and Mapletree retained their leading positions, accounting for 36.9% and 16.7% of total existing stock, respectively.

Average asking rent records a modest uptick, while market yield follows a sideways trajectory

• Average asking rent rose modestly to USD 5.04 per sqm per month, up 0.3% q-o-q and 2.7% y-o-y.
• This upward trend was mainly supported by premium rates at improved-performance projects. However, net effective rents remained competitive as landlords continued offering substantial incentives to attract tenants.

Outlook: Market sentiment is expected to gradually improve towards late 2026, supported by the anticipated economic recovery

• The Southern market is projected to expand further in 2026, with nearly 313,000 sqm of new NLA scheduled for completion. Notably, Sembcorp is set to establish its first presence in the South through a ready-built hybrid development by end-2026.
• Market sentiment is expected to be buoyant in the lead-up to the upcoming Lunar New Year holiday and gradually rebound towards late 2026, aligning with an anticipated recovery of both domestic and international economies.