Industrial properties can provide rental income, capital appreciation and portfolio diversification, particularly when supported by strong business demand and strategic locations.

Industrial properties in Singapore are generally classified into B1 (Light Industrial), B2 (General Industrial) and Food Factory depending on the permitted industrial activities and pollution impact.

B1 properties generally support cleaner and less pollutive activities, while B2 properties allow a wider range of industrial activities, including those with higher pollution impact, subject to approval.

Freehold properties generally offer longer-term ownership flexibility, while leasehold properties may provide a lower entry price and potentially attractive rental yields.

Foreign companies and individuals can generally purchase certain industrial properties, but specific ownership restrictions may apply depending on the property type, land tenure and applicable regulations.

Key considerations include approved use, B1/B2 zoning, tenure, floor loading, ceiling height, loading/unloading facilities, vehicle access, ramp access, power supply, MCST charges and potential usage restrictions.

A change of use may be possible, but it usually requires URA planning approval and/or approval from the relevant authorities. Buyers should verify the approved use before committing to a purchase.

Besides the purchase price, buyers should consider Buyer’s Stamp Duty (BSD), legal fees, GST where applicable, property tax, maintenance/MCST fees and financing costs.