Why Industrial Properties Deserve a Place in Your Singapore Real Estate Portfolio

Industrial properties are among the most overlooked asset classes in Singapore — yet they offer compelling fundamentals for investors seeking diversification, stable income, and exposure to real estate without the burden of Additional Buyer's Stamp Duty (ABSD). Here's a structured look at why industrial property deserves serious consideration in your portfolio.

Manufacturing: A Key Pillar of Singapore's Economy

Singapore's industrial property market moves in tandem with the broader economy, particularly its manufacturing sector. Manufacturing underpins a wide ecosystem spanning factories, logistics, warehousing, engineering, biomedical, and electronics firms.

Chart 1: Index of Industrial Production y-o-y Change | Source: Singstat, ERA Research

Chart 2: Non-Oil Domestic Exports and Manufacturing Exports | Source: Singstat, ERA Research

The Singapore PMI has stayed above 50.0 since August 2025, reaching 50.5 in March 2026. Singapore's GDP grew 5.0% year-on-year in 2025 and 4.4% in 2024, with 1Q 2026 at 4.6% year-on-year growth.

Chart 3: Purchasing Manager Index | Source: SIPMM, ERA Research

Chart 4: Singapore GDP y-o-y Growth | Source: MTI, ERA Research

Demand for Industrial Space Remains Robust

Industrial occupancy rates across Singapore have held broadly stable. Since 3Q 2023, occupancy of newly completed private multiple-user factory space has climbed to above 60% by 1Q 2026. Recent launches such as CT Gold @ Macpherson, Lok Yang Connection, Tampines Connection, and Stellar @ Tampines have all been well-received.

Chart 5: Occupancy Rate of Industrial Properties | Source: JTC, ERA Research

Chart 6: Total, Occupied and Vacant Stock | Source: JTC, ERA Research

Chart 7: Newly Completed Factory Occupancy | Source: JTC, ERA Research

Why Industrial Property Appeals to Investors

Unlike residential property, industrial assets are not subject to ABSD. For investors who already own residential property — whether Singaporeans, PRs, or foreigners — this is a significant structural advantage. Industrial prices rose steadily in 1Q 2026 and rents continue to climb.

Chart 8: Price Index and Transaction Volume | Source: JTC, ERA Research

Chart 9: Rental Index of All Industrial Properties | Source: JTC, ERA Research

Featured Industrial Launch: Gate+

Gate+ is a 33-year leasehold B2 ramp-up industrial development in Singapore's western industrial corridor, near Jurong Lake District, Jurong Innovation District, and the upcoming Tuas Mega Port. Close to the upcoming Tukang and Jurong Hill MRT stations (Jurong Region Line) and Boon Lay MRT (East-West Line).

Key Considerations

Most industrial properties in Singapore carry shorter leasehold tenures than residential properties. That said, well-located, modern industrial units in established corridors can still deliver meaningful portfolio returns for investors seeking real estate exposure with no ABSD liability.

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Source: ERA Realty Network. Original article published on era.com.sg. Charts and data: JTC, MTI, Singstat, SIPMM, ERA Research and Market Intelligence.