Why Industrial Property?
Industrial property in Singapore carries zero Additional Buyer's Stamp Duty โ regardless of how many properties you own or your nationality. For an investor buying a second property, ABSD on residential would be S$240,000+ (20%). On industrial, it's zero.
Demand is structurally supported by Singapore's role as a global logistics and manufacturing hub, with JTC reporting consistently low vacancy rates in the western industrial corridor.
Step-by-Step: How to Buy
Understand the Zoning
Confirm B1 (clean/light) or B2 (general industry). See our full B1 vs B2 guide โ
Check Lease Tenure
Most Singapore industrial properties are leasehold โ 30, 60 or 99 years from JTC. New launches like GATE+ begin with full tenure, maximising financing eligibility and resale value.
Know the SLA Occupation Rules
JTC-developed properties have a 3-year owner-occupier MOP before sub-letting. Private industrial developments on industrial land may not carry this restriction โ verify with the developer.
Calculate Stamp Duty
Only Buyer's Stamp Duty (BSD) applies โ tiered at 1% to 4% based on purchase price. No ABSD. No Seller's Stamp Duty on industrial property.
Secure Financing
Banks lend up to ~80% LTV for industrial. Loan tenures are capped at 35 years or remaining lease, whichever is shorter. Factor this into your cash flow planning.
Exercise the OTP
Pay the booking fee to secure your unit. Your lawyer handles conveyancing. For new launches, progressive payments are tied to construction milestones over 2โ4 years.
The 60/40 Rule for JTC Properties
For properties on JTC-managed land, URA mandates that at least 60% of gross floor area must be used for core industrial activities. The remaining 40% can be used for ancillary commercial purposes (reception, showroom, meetings). This rule applies to the occupier โ not the investor-owner.
Investor tip: GATE+ at Tukang Innovation Drive is a privately developed B2 industrial project โ full 33-year leasehold, 265 units, open to pure investors. Check current availability โ
Evaluating Rental Yield
Gross yield = (Annual Rental รท Purchase Price) ร 100. For B2 ramp-up units in Jurong West, 2024โ2025 gross yields range from 4.5% to 6%+. Key yield drivers:
- Direct ramp access vs cargo lift dependency
- Ceiling height โ 5.5m+ enables racking and mezzanine
- 3-phase power supply (required by most manufacturing tenants)
- Green Mark certification โ increasingly demanded by MNC tenants
- MRT proximity โ workforce access drives tenant demand
Key Risks to Understand
- Lease decay: Short remaining tenure affects resale and financing significantly
- Use restriction: A B1 tenant in a B2 unit is fine; a B2 tenant in a B1 unit is a compliance risk
- Vacancy risk: Location, access, and building spec drive occupancy โ not just price
- Interest rate sensitivity: Leveraged industrial investment is exposed to rate movements
Frequently Asked Questions
GATE+ โ Smart B2 Industrial Investment
265 ramp-up factory units ยท Green Mark Platinum ยท No ABSD ยท TOP January 2029
๐ฒ Enquire Now View Available Units