Why invest in industrial property in Singapore?
Investing in industrial property in Singapore offers numerous advantages. The city-state's strategic location at the crossroads of major global trade routes makes it an ideal hub for businesses looking to expand their reach in Asia. Singapore's stable political environment, robust legal framework, and pro-business policies provide a secure and conducive environment for investment. Additionally, the country's world-class infrastructure, including its ports, airports, and logistics facilities, ensures seamless connectivity and efficient supply chain management. The demand for industrial space in Singapore is driven by its thriving manufacturing, logistics, and technology sectors, providing investors with a steady stream of potential tenants and strong rental yields.
Looking for industrial property for sale in Singapore? Let our experts help you find the perfect location to grow your business and attract customers.
What types of industrial properties are available for sale in Singapore?
In Singapore, a variety of industrial properties are available for sale, catering to different business needs. These include factories, warehouses, logistics facilities, and high-tech industrial spaces. Factories are ideal for manufacturing operations, offering large floor areas and specialized facilities. Warehouses and logistics facilities provide ample storage space and are strategically located near transportation hubs for efficient distribution. High-tech industrial spaces are designed to accommodate advanced manufacturing and technology-driven businesses, featuring modern infrastructure and amenities. Each type of industrial property offers unique benefits, allowing investors to choose the best fit for their business requirements.
To read: Dive into our MarketBeat Report for a comprehensive analysis of Singapore's quarterly economic and industrial real estate performance, covering supply, demand, and pricing trends across markets and submarkets.
Can foreigners buy industrial property in Singapore?
Yes, foreigners can buy industrial property in Singapore. The Singapore government allows foreign ownership of industrial properties, making it an attractive option for international investors. However, there are certain regulations and guidelines that foreign buyers must adhere to. For instance, Seller Stamp Duties are applicable for industrial properties. Additionally, foreign buyers should be aware of any restrictions or conditions that may apply to specific industrial zones or properties. Our experienced real estate professionals can help foreign investors to navigate the purchasing process and ensure compliance with local regulations.
What is the property tax rate for industrial properties in Singapore?
The property tax rate for industrial properties in Singapore is determined by the Inland Revenue Authority of Singapore (IRAS). Industrial properties are subject to a progressive tax rate, which is based on the Annual Value (AV) of the property. The AV is an estimate of the rental income the property could generate in a year. The tax rates are structured to encourage efficient use of industrial space and to ensure that property owners contribute fairly to the country's revenue. It is important for property owners to stay informed about any changes in tax rates or regulations to ensure compliance and effective financial planning.
How is the Annual Value (AV) of an industrial property calculated?
The Annual Value (AV) of an industrial property in Singapore is calculated by the Inland Revenue Authority of Singapore (IRAS). It represents the estimated annual rental income the property could generate if it were rented out. The AV is determined based on factors such as the property's location, size, condition, and prevailing market rental rates for similar properties. IRAS conducts periodic reviews to ensure that the AV reflects current market conditions. Property owners can check their property's AV through the IRAS website and should be aware that changes in market conditions or property characteristics can affect the AV and, consequently, the property tax payable.
What are the typical leasehold terms for industrial properties in Singapore?
In Singapore, industrial properties are typically sold on leasehold terms. The majority of industrial sites have a leasehold tenure of about 30 years or less. Leasehold properties offer investors the opportunity to acquire industrial space at a lower upfront cost compared to freehold properties. However, investors should consider the remaining lease term and potential implications for property value and financing options. It is advisable to seek professional advice to understand the terms and conditions of the leasehold agreement.
How can I determine the market value of an industrial property in Singapore?
Determining the market value of an industrial property in Singapore involves several factors. Key considerations include the property's location, size, condition, and the current demand and supply dynamics in the industrial property market. Comparable sales of similar properties in the area can provide valuable insights into market value. Additionally, professional property valuation services can offer an accurate assessment by considering factors such as the property's potential rental income, leasehold tenure, and any unique features or facilities. Our real estate professionals can assist you to obtain a comprehensive and reliable valuation of the industrial property.
What are the most popular areas to buy industrial property in Singapore?
Singapore offers several popular areas for purchasing industrial property, each with its unique advantages:
- Jurong / Tuas: This western region is a major industrial hub, home to the Jurong Industrial Estate and Tuas Mega Port. It offers excellent connectivity to Malaysia and is ideal for heavy industries, logistics, and manufacturing operations. The area is well-served by major expressways and public transportation, making it a strategic location for businesses.
- Loyang / Changi: Located in the eastern part of Singapore, this area is known for its proximity to Changi Airport and the Loyang Industrial Estate. It is a prime location for aerospace, logistics, and high-tech industries. The area benefits from efficient transportation links, including the East Coast Parkway (ECP) and the Tampines Expressway (TPE).
- Macpherson / Aljunied / Ubi: Situated in central Singapore, this area is popular for its accessibility and proximity to the city center. It offers a mix of industrial and commercial properties, making it suitable for small to medium-sized enterprises. The area is well-connected by major roads and public transport, providing easy access to other parts of the island.
- Woodlands / Senoko / Marsiling / Kranji: Located in the northern region, this area is known for its industrial parks and proximity to the Woodlands Checkpoint, providing easy access to Malaysia. It is ideal for businesses involved in manufacturing, logistics, and cross-border trade. The area is served by the North-South Expressway (NSE) and the upcoming Thomson-East Coast MRT Line.
- Serangoon North / Ang Mo Kio: This area in the northeastern part of Singapore is known for its high-tech industrial parks and research facilities. It is a popular choice for technology and innovation-driven businesses. The area is well-connected by major expressways and public transport, offering convenient access to the city center and other industrial zones.
Getting to and from Singapore
- Air Travel: Singapore is served by Changi Airport, one of the world's busiest and most efficient airports. It offers extensive connectivity to major cities worldwide, with numerous airlines operating flights to and from Singapore. The airport is located in the eastern part of the island and is easily accessible via the East Coast Parkway (ECP) and public transport options such as the MRT and buses.
- Rail Travel: The Mass Rapid Transit (MRT) system is the backbone of Singapore's public transportation network, providing efficient and reliable rail travel across the island. The MRT connects key industrial areas, business districts, and residential neighborhoods, making it a convenient option for commuting and travel.
- Road Travel: Singapore boasts a well-developed road network, with major expressways such as the Pan Island Expressway (PIE), East Coast Parkway (ECP), and Ayer Rajah Expressway (AYE) facilitating smooth road travel. The island's compact size ensures that most destinations are within a short drive, making road travel a convenient option for businesses and residents.
