In 2024, the industrial property market is not just a fallback option but a strategic investment opportunity with promising returns.

Just a year ago, the narrative was all about smaller firms, particularly those in e-commerce and renovation, moving to industrial estates to escape the escalating rental costs that can be 60-80% lower than the central business district (CBD).


However, the story has evolved, and the appeal of Singapore's industrial properties now extends far beyond mere price considerations.


In this article, let's explore the factors driving this remarkable transformation and uncover the top industrial buildings in Singapore that have become hot cakes, and why these properties are now the talk of the town.

Key Trends and Developments

Revitalization of Older Industrial Estates

To maintain its competitive edge, Singapore has embarked on initiatives to revitalize its older industrial estates.

In recent years, a new coworking player has arisen within industrial sites and have been growing with demand catching up. This caters to most SME that can operate in B1 and B2 settings.

These efforts have not only maximized land use but also contributed to the long-term sustainability of the industrial sector.

Emphasis on Innovation and Technology

The demand for technologically-advanced industrial spaces has risen significantly.

Facilities with robust digital infrastructure, automation capabilities, and smart systems have become highly sought after by forward-thinking occupiers.

The government's push for innovation and the development of new technologies has further supported the growth of specialized industrial spaces, such as research and development centers and data centers.

Sustainability Takes Center Stage

The growing emphasis on sustainability has shaped the future of Singapore's industrial and logistics sectors.

Developers and occupiers have prioritized green building practices, energy efficiency, and waste reduction in their operations.

This shift has not only contributed to Singapore's environmental goals but also created long-term value for businesses and investors by improving operational efficiency, reducing costs, and enhancing overall competitiveness.

Industrial Rental and Occupancy Trends

Rental Growth and Occupancy Rates

• Industrial property rents in Singapore continued to rise in the first quarter of 2024, despite a decline in occupancy rates and a fall in prices for the first time in three years.

• The overall industrial rent index rose by 1.7% in Q1 2024, similar to the pace seen in Q4 2023, and 7.8% year on year (yoy).

• Single-user factory and business park rents rose the most, by 2.1% and 1.3% respectively, while warehouse rents increased by 2%.
  

Price Corrections

• Industrial property prices softened by 0.2% in Q1 2024, ending 13 consecutive quarters of uptrend.

• Single-user factory prices corrected by 1.0% q-o-q, while multi-user factory prices continued to rise for the 14th consecutive quarter.
  

Supply and Demand Dynamics

• The total available stock of industrial space stood at 53 million square meters as of end-March 2024, with a net increase of 0.7 million sqm compared to the previous year.
  
  
• 1.6 million sqm of industrial space is expected to be completed in the rest of 2024, with another 1.6 million sqm expected in 2025 and 2026, indicating an average annual supply of about 1.2 million sqm from now until end-2026.
  

Sector-Specific Analysis: Industries Driving Demand

As businesses and investors flock to Singapore's industrial landscape, certain hubs have emerged as particularly noteworthy. Let's take a closer look at some of the standout properties that are capturing the attention of the market:

Technology and Startups

The tech and startup sectors have been at the forefront of this industrial revolution, seeking out accessible, flexible spaces that cater to their dynamic needs.

Developments like Northstar@AMK and Wcega Tower have become magnets for these companies, offering space and a vibrant ecosystem.

• Northstar @ AMK

A Diverse Commercial Ecosystem

Unlike a traditional industrial development, this property offers a unique blend of commercial, retail, and light industrial tenants, creating a vibrant and dynamic environment.

Northstar @ AMK has something for everyone, from start-up companies to essential service providers.

Northstar @ AMK's strategic location in the heart of Ang Mo Kio, close to Buangkok MRT station, ensures excellent connectivity for businesses and customers. Not to forget ease of hiring.

The property is surrounded by many amenities, including NTUC Fairprice, Sheng Siong Supermarket, and Kopitiam, providing a one-stop destination for the local community.

The proximity to Greenwich V and Hougang Green Shopping Malls further enhances the appeal of Northstar @ AMK, offering tenants and owners a wide range of retail and dining options within easy reach.

• WCEGA Tower
  

A Versatile Option for Businesses

WCEGA Tower is strategically situated on a prime site just beside the Pan-Island Expressway (PIE) and Bukit Batok East Avenue 3, offering excellent connectivity for businesses.

The property's proximity to the Bukit Batok MRT station on the East-West Line further enhances its accessibility, making it an attractive choice for businesses involved in logistics, distribution, advanced manufacturing, biomedical sciences, and information and communications technology.

Designed with a focus on convenience and people-oriented features, WCEGA Tower provides a working environment that is both efficient and visually appealing.

The property's unique design and contemporary style create a brand-new concept for commercial developments, offering discerning entrepreneurs a beautiful and e-feature-enabled environment to thrive in.

Financial Services and Crypto Firms

While some financial services and crypto firms are downsizing their CBD offices and furthermore moving backend operations to industrial estates to cut costs and maximize operational efficiency.

Pantech Business Hub and Oxley BizHub have become popular destinations for these sectors, providing the necessary infrastructure and regulatory compliance.

• Pantech Business Hub

A Prime Industrial Address in Singapore's West

Pantech Business Hub is a quality industrial complex located in the western part of Singapore, nestled on the banks of Sungei Pandan Loop.

The property consists of 3 distinctive 7-storey blocks primarily used for factory and workshop spaces.

The strategic location of Pantech Business Hub offers excellent connectivity, with well-populated residential estates of Clementi, Jurong and Bukit Batok within reach.


The property is also well-served by public transportation options, including buses and the metro (MRT).

Pantech Business Hub features a range of amenities and facilities designed to cater to the needs of industrial tenants, including:

• 5 passenger lifts and 5 cargo lifts (3-ton capacity)
• 10 all-weather loading bays with dock levellers for easy handling of goods
• Ceiling heights ranging from 4.8m to 5.4m
• Floor loading capacities up to 20kN/m2
  

• Oxley BizHub

A Vibrant Light Industrial Development in Ubi

Oxley BizHub is a 10-storey multiple-user light industrial development strategically located in the Ubi district of Singapore. Comprising 3 podium blocks and 4 tower blocks, the property offers a total of 728 units.

The property's prime location along Ubi Road 1 and in close proximity to the busy Paya Lebar Road ensures excellent connectivity and accessibility for businesses and their employees.

Oxley BizHub is just a 5-minute walk from Tai Seng MRT Station, providing convenient public transportation options.

The development is surrounded by a vibrant ecosystem, including an in-house canteen, as well as nearby options like Breadtalk HQ, Sakae Building, and various food courts, restaurants, and banks.

These include a gymnasium, swimming pool, and well-landscaped gardens, creating a holistic work environment for the occupants

PRIME AND INTEGRATED BUSINESS HUB

Companies are constantly on the lookout for strategic locations that can provide operational efficiency, superior connectivity, and a wide array of amenities.

Businesses looking to establish a presence or those requiring specialized facilities for light industrial operations are turning to properties like Delta House and Midview City. These projects cater to the evolving needs, ensuring they remain competitive and efficient.

• Midview City

A Vibrant Commercial Ecosystem

Midview City is a mega, integrated business hub situated in the central part of Singapore.

Occupying over 552,000 square feet of land, this 8-story building with an exclusive 3-story terrace block offers prime business space designed to provide companies with an outstanding corporate image and dynamic environment.

Strategically located, Midview City benefits from excellent connectivity. It is situated near the Marymount and Bishan MRT stations, allowing for convenient public transportation access.

The property also has easy access to major expressways like the CTE and AYE, enabling efficient travel to the Central Business District and Orchard shopping district.

The area surrounding Midview City is well-equipped with a range of amenities, including banks, retail shops, grocery stores, food centers, and recreational clubs.

• Delta House

A Centrally Located Commercial Hub

Delta House is a 7-story freehold commercial property situated at 2 Alexandra Road in Singapore's District 03. It primarily serves as an office space for rent and sale, providing a convenient location for businesses.

Delta House is strategically located, with the nearest MRT stations being Tiong Bahru (EW17) and Havelock (Te16), both within a 13-minute walking distance.

The property also benefits from easy access to major expressways like the CTE and AYE, allowing for efficient travel to the Central Business District and Orchard shopping district, which are just a 10-minute drive away.


The area surrounding Delta House is well-equipped with a range of amenities. Within close proximity, there are several major shopping malls, including Tiong Bahru Plaza, Valley Point, and Great World City, providing a variety of retail, dining, and entertainment options. Recreational facilities like Tiong Bahru Community Centre and Tiong Bahru Park are also nearby.

Opportunities for Global and Singapore Investors

The strength and diversification of Singapore's industrial hubs present compelling investment opportunities for global and local investors alike.

4 Key Factors Driving Interest include

1. Consistent Growth and Attractive, Reliable Returns

The city-state's strategic location, world-class infrastructure, and business-friendly policies have made it a magnet for global companies seeking to establish their manufacturing and logistics operations. This sustained demand has translated into a stable and lucrative industrial real estate market, providing investors with the opportunity to capitalize on the steady stream of rental income and capital appreciation.

2. Diversification of Residential to Commercial and Industrial Sector

Diversification is key to mitigating risk and maximizing long-term returns. Moving beyond just residential properties and looking at commercial and industrial properties can open new opportunities for you. Industrial properties, in particular, can be more stable and have more predictable income than residential ones.

By diversifying, you can create a stronger and more balanced investment portfolio that can better handle market ups and downs.

3. Family Offices Investing in the Industrial Sector

Another notable occurrence that has been gaining momentum is the increasing interest from family offices in the industrial sector. These sophisticated investment vehicles, often established by high-net-worth individuals and families, have recognized the inherent value and stability of industrial real estate.

As more family offices join the fray, the demand for industrial properties is expected to continue its upward trajectory.

4. Low and Favorable Taxation

Singapore's friendly tax system is a big reason why investors are interested in the industrial sector. The country has low corporate taxes and offers various business incentives, making it a great place to invest.

By choosing to invest in industrial properties in Singapore, you can take advantage of these low taxes and improve your overall returns. This tax benefit makes your investment even more profitable.

Elevate Your Portfolio: Invest in Singapore's Thriving Industrial Hubs

The challenges faced with high rental rates in the CBD have reshaped Singapore's industrial landscape in unexpected ways. These industrial properties have become magnets for a diverse range of tenants, from web design, and furniture retail to advanced manufacturing and biomedical companies.

As an astute investor, do capitalize on the growing demand for well-located and adaptable industrial spaces.

By investing in these properties, you can position yourself to benefit from the changing dynamics of Singapore's business environment.

Leverage these exciting developments in Singapore's industrial real estate market!

Don't miss this chance to secure your place in the future of the city's economic landscape.

Contact us now to discuss how you can take advantage of these transformative trends and stay ahead of the curve.