While Singapore's residential market attracts most of the headlines, 10 commercial and industrial projects in the current Huttons pipeline represent a strategically underappreciated opportunity — particularly for foreign buyers and investors who have been priced out of the residential market by the 60% ABSD. Commercial and industrial property purchases in Singapore carry zero ABSD for every buyer profile, no exceptions. Here is the full picture.
Why commercial and industrial property matters in 2026
For most foreign nationals, Singapore's 60% ABSD makes residential property ownership economically challenging at any but the highest price points. Commercial and industrial property sidesteps this entirely. A foreigner purchasing a S$2 million freehold factory unit pays zero stamp duty beyond the standard BSD — a direct saving of S$1.2 million compared to an equivalent residential purchase.
Beyond the ABSD advantage, Singapore's industrial property market has demonstrated strong fundamentals. Vacancy rates for business park and B1 industrial space have remained low as the government has carefully managed supply. Freehold industrial units — particularly B1 factories near residential precincts — have appreciated meaningfully over the past decade and command premium rents from a diversified tenant base.
Zero ABSD rule: Commercial and industrial properties are classified as non-residential under Singapore law. ABSD applies only to residential property. This means all buyers — Singapore Citizens, PRs, foreigners, and entities — pay the same standard BSD rate with no additional duty. For foreign buyers, this is the most accessible property investment route in Singapore today.
The 2026 commercial & industrial pipeline: full listing
Open for immediate booking
| Project | Type | Tenure | Developer | Land Cost | Status |
|---|---|---|---|---|---|
| Keystone @ Mandai (2C Mandai Estate) | Factory B2 | Freehold | Bayswood | $613 psf | Open Now |
| Gourmet Xchange (10 Kallang Way 5) | Food Factory | — | CapitaLand | $300 psf | Open Now |
| Shoppes @ Sky Eden (1 Bedok Central) | Commercial | 99 Yrs | The Assembly Place | NIL | Open Now |
| Space 18 (18 Lorong Ampas) | Factory B1 | Freehold | JVA Whampoa | $727 psf | Open Now |
Launching mid-2026
| Project | Type | Tenure | Developer | Land Cost | Preview |
|---|---|---|---|---|---|
| Gate+ (IGLS – Tukang Innovation Drive Plot A) | Factory B2 | — | Fusion Property & BP-Innovue | $163 psf | 6–20 May 2026 |
| Generations @ Tannery (71 Tannery Lane) | Factory B1 | Freehold | CityInd | NIL | May 2026 |
| 21 New Industrial Road | Factory B1 | Freehold | JVA NIR | $664 psf | July 2026 |
Pipeline (TBA launch dates)
| Project | Type | Tenure | Developer | Land Cost |
|---|---|---|---|---|
| IGLS – Tukang Innovation Drive (Plot B) | Factory B2 | 33 Yrs | Fusion Land | $189 psf |
| IGLS – Pioneer Road (Formerly Tuas Ave 11) | Factory B2 | 33 Yrs | Hock Lian Seng Holdings | $117 psf |
| IGLS – Kaki Bukit Avenue 5 | Factory B2 | 33 Yrs | Chiu Teng Enterprises | $318 psf |
B1 vs B2 factories: what investors need to know
The distinction between B1 and B2 is fundamental to investment decisions in the industrial sector. B1 (Business 1) properties are located closer to residential areas and are restricted to light, clean industrial uses — think food production, printing, electronics assembly, and light manufacturing. The tenant pool is broader, vacancy risk is lower, and capital values are higher. Freehold B1 units near established precincts (Lorong Ampas, Tannery Lane) command significant premiums.
B2 (Business 2) allows heavier industrial operations and is found in dedicated industrial zones further from residential areas. Entry prices are lower and yields can be higher, but tenant quality and capital appreciation are more variable. The leasehold B2 pipeline projects at Tukang and Pioneer Road represent value plays for yield-focused investors comfortable with leasehold tenure.
Standout pick: Generations @ Tannery at 71 Tannery Lane — a freehold B1 factory redevelopment in a well-established industrial location near Paya Lebar. Freehold B1 units at accessible price points in central Singapore are genuinely rare. This one warrants early attention.
Frequently asked questions
Can a foreigner own a commercial or industrial unit in Singapore?
Yes. There are no foreign ownership restrictions on commercial or industrial property in Singapore. Foreigners may purchase, hold, and sell these assets freely. No ABSD applies and there is no requirement to be a PR or Citizen.
Can I use a mortgage to purchase an industrial unit?
Yes. Singapore banks lend on commercial and industrial property, typically up to 80% LTV for individuals. However, interest rates for non-residential property loans may differ from home loan rates and the loan tenure may be shorter. Engage a mortgage broker to compare options before committing.
Are there seller's stamp duty (SSD) restrictions on industrial property?
No. Seller's Stamp Duty applies only to residential property. Industrial and commercial property can be sold at any time without SSD penalties, providing greater liquidity flexibility compared to residential investments.
Exploring ABSD-free investment options?
I advise buyers on both residential and commercial strategies in Singapore. If the residential ABSD is a barrier, let's discuss your options.
Chat with Andee on WhatsAppSource: Huttons Analytics, URA, HDB & JTC. All units are estimated numbers only. Data accurate as at 7 May 2026 and subject to change. This article is for general informational purposes only and does not constitute financial or investment advice. Andee Ching, CEA No. R071050B, Huttons Asia Pte Ltd, Licence No. L3008899K.