Why Investors Are Still Buying Singapore Commercial and Industrial Property
Updated: Jun 22
The Singapore property market is often discussed through the lens of residential prices, cooling measures and private home demand.
But away from the residential headlines, something important is happening.
Investors are still actively buying commercial and industrial assets.
A recent EdgeProp Singapore article, From Fujifilm Building to Orchid Hotel, Investors Stay Active Across Industrial and Commercial Assets, highlighted a series of transactions across different non-residential property sectors. These included the former Fujifilm Building, Hwa Yew Industrial Building, a logistics and warehouse asset at Jurong Port Road, a strata office unit at Suntec Tower 3, a shophouse at Serangoon Garden Way, and Orchid Hotel in Tanjong Pagar.
That is a wide spread of asset classes.
Industrial buildings. Warehouses. Strata offices. Shophouses. Hotels.
The common thread is simple: capital is still moving into Singapore real estate where the asset has a clear purpose, strong location, scarcity value, or long-term repositioning potential.
In my view, this is a useful reminder that investors have not disappeared. They have become more selective.
And that distinction matters.
Investors Are Not Avoiding Real Estate. They Are Avoiding Weak Fundamentals.
It is easy to assume that a cautious economic environment means investors are sitting on the sidelines.
Some are.
But the better reading is that capital is becoming more disciplined.
Buyers are no longer chasing any asset simply because it is property. They are studying the underlying fundamentals much more carefully.
Is the asset freehold or long leasehold?
Is the location difficult to replicate?
Is there a clear tenant pool?
Can the building serve real business needs?
Is there future scarcity?
Is the price supported by genuine demand, rather than just sentiment?
These are the questions that matter now.
For commercial and industrial property, this shift is actually healthy. It separates assets with real long-term utility from those that only looked attractive when liquidity was easy and interest rates were low.
I have written previously about why industrial properties deserve a place in a Singapore real estate portfolio. The point is not that every industrial asset is automatically good. It is that the right industrial asset can offer investors exposure to real business demand, rental income, diversification and no Additional Buyer's Stamp Duty.
That remains a powerful combination.
The Industrial Transactions Are Particularly Telling
The former Fujifilm Building at 10 New Industrial Road was sold for $71 million, while Hwa Yew Industrial Building at Mandai Estate reportedly changed hands for $72 million.
These are not small-ticket purchases.
They show that larger investors are still willing to commit capital to industrial assets when the fundamentals make sense.
What stood out to me about the former Fujifilm Building was not just the price. It was the profile of the asset: a freehold industrial building, established location, 40-foot container accessibility, and a site zoned for Business 1 industrial use.
These details matter.
Industrial property is not valued only by how it looks from the outside. It is valued by what it allows the occupier to do.
Access, floor loading, zoning, ceiling height, power, layout, loading facilities and vehicle movement are not technical footnotes. They are investment fundamentals.
That is why I recently wrote about why the warehouse floor may become the most important part of industrial property in Singapore. As business operations become more demanding, the market will increasingly reward industrial properties that are genuinely usable, not merely available.
The best industrial assets are not always the prettiest.
They are the ones that work.
New Launch Demand Has Been Healthy
This institutional and private capital interest is not limited to older buildings or large-ticket acquisitions.
I have seen the same pattern on the ground with the new launch commercial and industrial projects I have been working on.
CT Gold is a good example. The project sold out on the very first day, which says a lot about demand for well-positioned freehold industrial assets in Singapore.
That result did not happen by accident.
Freehold industrial supply is limited. Well-located freehold industrial supply is even more limited. When a project offers the right combination of tenure, location, specifications and pricing, buyers respond quickly.
Other recent and upcoming commercial and industrial new launches have also seen healthy interest, particularly from investors and end-users who understand that real estate is not just about capital appreciation. It is also about control, functionality and long-term positioning.
For business owners, buying their own space can reduce exposure to rental hikes and landlord uncertainty.
For investors, owning a functional industrial or commercial unit can provide access to a tenant base that is driven by operational need, not lifestyle preference.
That difference is important.
A residential tenant can move because of a view, a school, a pool or a lifestyle preference.
An industrial tenant moves only when the space no longer works for the business, or when another space works significantly better.
That makes good industrial property especially interesting.
Scarcity Is Becoming a Bigger Part of the Investment Case
One of the reasons commercial and industrial assets continue to attract attention is scarcity.
Singapore is land-scarce by design. That applies across all asset classes, but it is especially relevant for freehold industrial property, strata-titled offices and conservation shophouses.
When supply is structurally limited, the best assets often become tightly held.
This is why transaction volume can sometimes appear quiet while pricing remains resilient. Owners of good assets do not need to sell. Buyers who want those assets have to wait, negotiate, or pay up when an opportunity appears.
This is also why tenure matters so much.
In another article, Tenure Is Everything: What Singapore's Latest Industrial Caveats Tell Long-Term Investors, I wrote about how lease balance can explain a large part of the pricing gap between assets that look similar on paper.
A freehold or long-lease asset is not simply a more expensive version of the same thing.
It is a different investment altogether.
Shorter-lease assets can still make sense, especially when the entry price and rental yield compensate for lease decay. But investors need to be honest about what they are buying. A strong gross yield does not automatically mean a strong total return.
The more sophisticated investors understand this.
That is why they look at tenure, replacement cost, tenant demand, asset functionality and exit liquidity together.
Why Cecil Place Deserves Attention
The same scarcity argument applies to strata-titled offices in the CBD.
Cecil Place still has freehold strata-titled office units available, and I believe this will prove to be an excellent long-term investment for the right buyers.
The reason is not just that it is in the CBD.
The deeper reason is that freehold strata office supply in Singapore is extremely limited. Over time, the market has become increasingly constrained by redevelopment, tightening controls around strata subdivision, and the simple fact that many owners of quality freehold strata offices are long-term holders.
For family offices, fund managers, professional services firms, boutique wealth managers and private investment companies, owning a freehold office in the CBD can serve more than one purpose.
It can be an operational headquarters.
It can be a balance sheet asset.
It can be a long-term capital preservation tool.
It can be a legacy asset in a market where future supply is unlikely to be easily replicated.
That is why I think Cecil Place stands out.
It is not an asset that should be judged only by current rental yield. The stronger case is long-term scarcity, location, tenure and the ability to own a permanent foothold in Singapore's financial and commercial core.
For investors who already understand shophouses and freehold commercial assets, the logic is familiar.
The difference is that Cecil Place offers a more institutional, office-focused expression of the same scarcity theme.
Upcoming Launches Still Matter
For investors who missed CT Gold, it is not too late.
There are other commercial and industrial projects launching soon, and some of them will be highly relevant for different buyer profiles.
Some investors may prefer freehold industrial assets.
Some may prefer lower-quantum leasehold industrial units with stronger yield potential.
Some end-users may prefer ramp-up access because it solves real operating problems.
Some food operators may prefer purpose-built food production space because compliance, efficiency and location matter more than ever.
This is where selection becomes important.
Not every new launch is worth buying. Not every low psf opportunity is cheap. Not every freehold asset is automatically attractive. And not every short-lease industrial unit should be dismissed.
The right answer depends on the buyer's objective.
Are you buying for own use?
Are you buying for rental yield?
Are you buying for capital preservation?
Are you buying for long-term appreciation?
Are you buying to diversify away from residential property?
Are you buying as a family office, SME owner, investor, or corporate occupier?
The strategy changes depending on the answer.
That is why the next wave of commercial and industrial property demand will likely be more specialised. Buyers will not just ask, "What is the psf?"
They will ask, "What role does this asset play in my portfolio?"
My View
The EdgeProp article is important because it captures what is happening beneath the surface.
Investors are still active.
But they are not buying blindly.
They are buying assets with location, tenure, functionality, scarcity and clear long-term use cases.
That is exactly where I think Singapore commercial and industrial property remains compelling.
The market is not about chasing every launch or every caveat. It is about understanding which assets are becoming harder to replace, which buildings are useful to real businesses, and which locations will remain relevant over the next decade.
CT Gold selling out on the first day is one signal.
Large industrial transactions are another.
CBD strata office demand is another.
The continued interest from family offices, private investors and institutional capital is another.
Taken together, the message is clear.
Good commercial and industrial assets in Singapore are still very much in demand.
The opportunity now is not to rush in blindly, but to study the market carefully and position early in assets with the right fundamentals.
For investors, asset managers, family offices or business owners who are exploring commercial and industrial property, the next few months will be worth watching.
There are still opportunities in the market, including upcoming new launches and remaining freehold strata-titled office units at Cecil Place.
If you are keen to understand what is available, what is launching soon, or what may suit your portfolio, drop me a message.
Speak to Marc
If you are considering commercial or industrial property in Singapore, or would like to understand upcoming new launches and available Cecil Place units, feel free to reach out.
WhatsApp Marc: https://wa.me/6591170234
Email: marc@era.com.sg
Credit
This article references EdgeProp Singapore's article, "From Fujifilm Building to Orchid Hotel, Investors Stay Active Across Industrial and Commercial Assets", written by Cecilia Chow and published on 20 June 2026.
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