RealEstat.id (Jakarta) – Recovering consumer spending is expected to drive economic momentum and bolster the industrial and logistics sector across major Asia Pacific markets over the next 12 to 18 months, according to the latest Colliers Asia Pacific Industrial & Logistics Market Insights report (September 2025).
Colliers highlights that the surge in e-commerce activity and growing demand from third-party logistics (3PL) providers will remain key catalysts, as occupiers increasingly seek high-quality, efficient, and sustainable warehouse facilities.
“The Asia Pacific industrial and logistics sector is undergoing a strategic reset,” said Gavin Bishop, Managing Director of Industrial & Logistics at Colliers.
While leasing demand has moderated in some markets, the underlying fundamentals remain strong. “We’re seeing growing interest from core-plus investors and expect more capital to flow into core investments in the coming year,” he added.
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Bishop added that occupiers are prioritizing automation-ready and high-specification assets designed to enhance operational efficiency and meet sustainability goals—factors that continue to support rental growth and reinforce the sector’s long-term value.
Despite some moderation, leasing activity remains strong—particularly in industries driven by domestic consumption and ongoing supply chain transformation.
Rivan Munansa, Head of Industrial & Logistics Services at Colliers Indonesia, noted, Indonesia’s industrial market is entering a new growth phase, fueled by rising demand from the data center and electric vehicle (EV) sectors.
“Chinese manufacturers are actively relocating and expanding within Greater Jakarta, including growth corridors such as Karawang, Purwakarta, Subang, and Batang. With limited supply and increasing investor interest, these areas are emerging as key industrial hubs,” he explained.
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In India, Vijay Ganesh, Managing Director of Industrial & Logistics Services at Colliers India, observed that rising consumer demand continues to drive leasing activity from 3PL and e-commerce players.
“Occupier demand is expected to remain strong across most markets, though export-oriented companies may face challenges due to tariffs impacting profitability,” he said.
Singapore recorded a remarkable 133% year-on-year increase in demand—mainly due to strong absorption of new supply—while India posted robust results, with leasing activity up 32.3% year-on-year in H1 2025 and 13.9% higher compared to H2 2024.
These figures underscore the resilience and strategic appeal of prime logistics assets in both markets.
On the supply side, developers are increasingly cautious in markets with higher vacancy rates. Supply pipelines in Australia, Japan, and Singapore are stabilizing, while Mainland China and parts of India continue to face vacancy pressure due to significant new completions.
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Rental trends across Asia Pacific remain mixed. Ahmedabad (India) led regional rental growth with a 17.6% year-on-year increase, followed by Pune (11.1%) and Brisbane (7.3%)—markets characterized by strong demand and limited supply.
Conversely, Mainland China and Hong Kong experienced rent declines amid oversupply and softer demand.
Overall, the outlook for rental growth across the region remains positive, though markets with oversupply may continue to experience short-term pressure.
The report concludes that occupiers’ focus on high-quality, automation-ready, and sustainable warehouse facilities continues to shape a clear “flight-to-quality” trend, setting a new standard for the future of industrial and logistics real estate in Asia Pacific.
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