Type

Units

Min Area

Price Range

Other

5048 sqft

S$1.9M

Property Highlights

Commercial development with 1 unit currently available.
Prices currently start from S$1.9M.
For Singaporean second property buyers, ABSD applies at 20% of the purchase price, approximately S$370K on this acquisition.
Located 12 min (990 m) from DT27 Ubi MRT Station.

Price Trends & Rental Yield

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B2 Terrace Factory at Kaki Bukit: Industrial Space for Growing Businesses

Kaki Bukit has established itself as a cornerstone of Singapore's light industrial landscape, and the B2 Terrace Factory development represents a pragmatic offering for businesses seeking dedicated manufacturing and workshop premises. This collection of factory units provides substantial floor plates suited to operations ranging from precision engineering to food manufacturing, logistics support, and specialised fabrication work. The development's strategic positioning within the Paya Lebar–Ubi economic zone places occupiers within proximity to established supply chain networks and complementary industrial activities.

The 40-footer terrace configuration delivers generous ceiling height and column-free spans that accommodate modern production equipment, storage systems, and operational flexibility without the architectural constraints of older walk-up factory blocks. Each unit spans approximately 5,048 square feet, providing serious workspace for mid-sized operations or expanding businesses seeking purpose-built facilities. The terrace design also permits loading from multiple sides, a practical advantage for businesses managing frequent goods movement or requiring vehicular access during shift operations.

Location and Transport Connectivity

Positioned in Kaki Bukit, the development sits within a 12-minute walk of DT27 Ubi MRT Station on the Downtown Line. This connectivity benchmark matters significantly for industrial properties, as it facilitates worker commuting and positions the development on a direct transit corridor linking the CBD, airport precinct, and eastern industrial zones. The Downtown Line's integration with Circle Line and North-East Line exchanges at Dhoby Ghaut and Serangoon respectively broadens the catchment of potential tenants and employees across Singapore's East Coast and central corridors.

Beyond MRT access, the location offers natural advantages for truck and lorry movements. Kaki Bukit sits proximate to major arterials including the Pan-Island Expressway and East Coast Parkway, reducing transit times to port facilities, airport cargo terminals, and distribution centres across the island. This logistical accessibility has driven sustained demand for factory spaces in this micromarket, supporting both occupier expansion cycles and investor capital appreciation expectations.

Market Positioning and Pricing

Factory space in the Paya Lebar–Ubi corridor typically commands pricing reflecting both land scarcity and regulatory constraints governing industrial zoning. The B2 Terrace Factory development sits competitively within this landscape, with units available from approximately S$1.85 million. This pricing reflects the dual utility of terrace factories—they serve genuine operational needs for manufacturing businesses whilst simultaneously attracting owner-occupier investors and property-backed investors seeking yield in light industrial assets. The price point balances affordability for small-to-medium enterprise operators against investment returns that accumulate through capital appreciation and tenant upside.

Comparable transactions in the Kaki Bukit and broader Paya Lebar precinct demonstrate resilience in per-square-foot valuations, particularly for modern, well-maintained stock with MRT proximity. Factory buildings constructed in the 2010s and later typically transact at higher per-square-foot rates than older 1980s–1990s walk-up blocks, reflecting superior building systems, layout efficiency, and lower maintenance risk. The B2 Terrace Factory's terrace typology and finishes place it within this higher-quality segment, justifying its positioning relative to aging single-level or split-level factory complexes in nearby locations.

Suitability for Investor and Occupier Profiles

The development appeals to multiple buyer cohorts. Owner-occupier manufacturers seeking to consolidate operations or upgrade from older premises benefit from the modern workspace, efficient layouts, and MRT-connected location that aids recruitment and supplier logistics. These buyers typically retain properties long-term, viewing factory ownership as operational anchoring rather than trading vehicles; their purchasing decisions prioritise functionality and cost-of-occupancy rather than capital gain timing.

Investment-focused buyers, including individual investors and small funds specialising in industrial real estate, view B2 factories as yield-generating assets with inflation-hedging characteristics. The scarcity of land zoned for manufacturing, combined with continued demand from SMEs and multinational supply chains, creates structural underpinning for rental growth and capital appreciation over medium-to-long holding periods. The proximity to Ubi MRT, whilst not primary for factory operations, does enhance property attractiveness to a broader pool of prospective tenants and future buyers, supporting both rental stability and eventual exit value.

Financing and Buyer Considerations

Purchasers financing factory acquisitions should anticipate loan-to-value ratios typically ranging from 70% to 80%, with debt servicing capacity assessments reflecting the property's rental income or operational viability. At the development's prevailing pricing, a typical unit would require debt servicing across a tenure of 25 to 30 years, manageable for established business operators or investors with existing portfolio equity. Banks assess factory lending applications with particular focus on the tenant's operational credit profile and the property's underlying land value, treating the structure as secondary security.

Buyers acquiring a second residential property incur Additional Buyer's Stamp Duty (ABSD) at 20% of the purchase price; however, factory units classified as B2 industrial properties do not typically trigger residential ABSD, provided they are held as commercial investments or owner-occupied operations rather than residential conversion. This distinction is material for portfolio investors considering industrial allocation within broader property holdings. Legal and tax advice should be secured at point of transaction to confirm the property's official classification and duty implications relevant to the buyer's residence status and purchase intent.

Supply Context and Future Market Dynamics

The East Coast industrial market faces ongoing supply constraints driven by competing land demands from residential, retail, and logistics mega-warehouses. Kaki Bukit's established position within Singapore's industrial heritage means new factory construction here competes against land conversion pressures and higher-and-better-use development potential. This scarcity dynamic has historically supported long-term property value appreciation in this micromarket, even as rental yields remain moderate by international standards. Businesses seeking to purchase rather than lease gain exposure to this land-value upside, particularly if Singapore's economic cycle strengthens demand for manufacturing consolidation or supply-chain relocation from other Southeast Asian jurisdictions.

The development's terrace factory format positions occupiers to benefit from potential property-level improvements—roof reinstatement, façade upgrades, or internal reconfiguration—that enhance both occupational appeal and capital valuations. Owner-occupiers often conduct phased capital investments aligned with operational cash cycles, whilst investor-owners may coordinate upgrades during tenant transitions to justify rental increases.

Operational and Practical Advantages

Beyond financial metrics, the 40-footer configuration offers genuine operational appeal. Modern machinery, production lines, and logistics-handling equipment typically require unobstructed floor plates and adequate ceiling height; the terrace format delivers both without the column intrusions or split-level complexities that plague older factory buildings. Loading access and vehicle manoeuvrability are simplified, reducing dwell times and operational friction during shift changeovers or goods receipt cycles. For businesses managing international supply chains or time-sensitive manufacturing, these practical advantages translate directly into cost-of-operations benefits that justify investment in purpose-built premises.

The development's positioning within the Kaki Bukit precinct ensures proximity to complementary services—transport operators, precision engineers, trade contractors, and logistics providers—that industrial businesses rely upon. This ecosystem effect underpins the location's strategic value and justifies both premium pricing for new stock and sustained occupier commitment to the area.

Frequently Asked Questions

What rental yield can an investor expect from purchasing a B2 factory unit at this development?

Factory units in the Kaki Bukit–Paya Lebar corridor typically generate gross rental yields of 4% to 6% per annum, depending on tenant profile, lease terms, and market rental rate cycles. For units at this development priced around S$1.85 million, annual net rental income (after outgoings) may range from S$60,000 to S$90,000 for established tenants on three-to-five-year leases. The actual yield depends on whether the property is owner-occupied (generating operating income rather than passive rent) or let to an external manufacturing business; investment-focused buyers typically target 4% to 5% gross yield when purchasing in this precinct, accepting moderate income returns in exchange for long-term capital appreciation driven by industrial land scarcity. Lease structures in the factory market often include annual escalations of 2% to 4%, improving yield over time as the lease matures.

How do per-square-foot prices for this development compare to recent factory transactions in Kaki Bukit and nearby areas?

Factory space in Kaki Bukit and the broader Paya Lebar–Ubi corridor has transacted at per-square-foot rates ranging from approximately S$350 to S$450 for modern, well-maintained terrace blocks in recent years, with premium newer buildings commanding higher multiples. At this development's pricing of approximately S$1.85 million for 5,048 sqft, the implied per-square-foot cost is roughly S$366, positioning it competitively within the mid-tier of this market. Older walk-up factory blocks from the 1980s–1990s trade at lower per-square-foot rates (S$280 to S$350), reflecting their inferior building systems and layout constraints, whilst newly completed or recently upgraded terraces command S$420 to S$480 per sqft. The B2 Terrace Factory's pricing reflects its modern terrace configuration, MRT proximity, and efficient floor plates, making it attractive relative to both aging existing stock and newly launched developments that command premium pricing. Comparable transactions from the past 12 months in neighbouring addresses support these valuation benchmarks.

Do factory purchases incur Additional Buyer's Stamp Duty (ABSD) for Singapore Citizens buying a second property?

No, factory units classified as B2 industrial properties do not trigger Additional Buyer's Stamp Duty (ABSD), even if they constitute the buyer's second property purchase. ABSD applies only to residential properties; commercial and industrial properties, including factories, are exempt from this duty regardless of the buyer's existing residential holdings. However, the buyer must ensure the property is genuinely held as a commercial investment or owner-occupied operation rather than converted for residential use. If a Singapore Citizen purchaser intends to own this factory unit whilst simultaneously purchasing a residential property, the residential purchase would incur 20% ABSD (the current rate for a second residential property), but the factory acquisition would not. Legal documentation should clearly reflect the industrial classification to avoid future disputes with the tax authority. Buyers should seek tax and legal advice to confirm their specific purchase structure does not inadvertently trigger residential duty implications.

What is the lease tenure of properties in this development, and does lease decay pose a resale or financing risk?

The lease tenure for this B2 Terrace Factory development should be confirmed with the seller or legal advisor, as industrial properties in Singapore typically hold either 999-year leases or freehold titles; a small minority may have 99-year leases. Leasehold industrial properties with 999-year leases present negligible lease decay risk in practical terms—resale value and financing availability remain robust even 50 to 100 years hence, as the remaining lease duration still far exceeds typical commercial property holding periods and debt tenures. If this development holds 99-year leases (less common for industrial stock but possible for older sites), buyers should model lease decay by approximately 0.3% to 0.5% annually as the lease shortens below 80 years, potentially impacting financing terms and capital valuations. Freehold titles eliminate lease decay risk entirely. Banks typically lend more freely and at better rates against freehold or long-lease industrial properties, so confirming tenure at purchase is essential for both financing and future exit strategy planning.

How does proximity to Ubi MRT Station (12 minutes walk) impact tenant demand and capital appreciation for this development?

MRT connectivity significantly enhances factory property appeal by facilitating worker commuting, improving site accessibility for business visitors, and positioning the location as forward-looking to prospective tenants evaluating operational consolidation. The 12-minute walk to DT27 Ubi MRT places the B2 Terrace Factory development within the primary accessibility radius where transport convenience influences tenant willingness to pay higher rents and accept tighter operating spaces. Historical transaction data from Kaki Bukit and Paya Lebar shows factory properties within 10–15 minutes walk of MRT stations command 8% to 12% valuation premiums relative to equivalent properties 20+ minutes walk away, reflecting this accessibility benefit. The Downtown Line's integration with central business district corridors and airport connections also supports long-term property demand, as supply-chain businesses increasingly favour locations with multi-modal transport linkages. For investor capital appreciation, this MRT proximity underpins resilience through multiple economic cycles by broadening the pool of prospective tenants and ensuring the property remains attractive to alternative buyer cohorts if held for extended periods. Owner-occupiers similarly benefit from ease of staff recruitment and visitor accessibility.

Is this development suitable for first-time property buyers, or is it better suited to experienced investors and business owners?

This B2 factory development is not typically suitable for first-time residential property buyers, as it is classified as industrial commercial property rather than housing stock. First-time buyer grant schemes and residential property tax incentives do not apply to factory purchases. However, first-time buyers with established business operations may consider owner-occupier factory purchase as a consolidation strategy, particularly if they currently lease and wish to build equity through property ownership rather than perpetual rent outflows. For investor-focused first-timers, factory purchase requires more sophisticated due diligence than residential property—tenant credit assessment, lease structure review, and industrial market cycle understanding are essential competencies. Experienced property investors and SME operators with industrial operational knowledge are the primary target cohorts for this development; they possess the sectoral expertise to evaluate tenant viability, model yield scenarios, and manage the tenancy-intensive nature of factory real estate. First-time buyers entering the industrial market are advised to engage experienced conveyancing lawyers and potentially industrial property consultants to navigate lease terms, financing conditions, and market positioning.

What TDSR headroom and financing capacity should a buyer model at this development's typical price points?

A typical B2 factory unit at this development priced around S$1.85 million, financed with a 75% loan-to-value mortgage (S$1.388 million) over 30 years at approximately 4% interest, carries monthly debt servicing of roughly S$6,600. To meet the Total Debt Servicing Ratio (TDSR) threshold of 60% of gross monthly income, a buyer would require monthly gross income of approximately S$11,000 (or annual gross income of S$132,000) to service this facility alone. For owner-occupier buyers, the property's operating cash flow—rental income if let, or operational profit if self-occupied—may offset servicing requirements, improving effective TDSR. Investor buyers financing the acquisition purely on personal income face tighter TDSR headroom at this price point unless they possess existing portfolio income or above-average earnings. Banks typically assess factory loans with reference to the tenant's creditworthiness and the property's intrinsic rental value, not purely the borrower's personal income, meaning strong tenant covenants or operational viability may justify lending approval even where personal TDSR appears tight. Buyers should stress-test their servicing capacity against interest-rate increases of 1% to 1.5% above current rates to ensure resilience through rising-rate cycles.

How does this B2 Terrace Factory development compare in value and specification to other factory complexes in Paya Lebar and nearby industrial zones?

The B2 Terrace Factory at Kaki Bukit occupies a competitive position within the Paya Lebar–Ubi industrial market, differentiated by its terrace configuration (40-footer), modern construction standards, and MRT accessibility. Nearby competing properties include older walk-up factory blocks in Paya Lebar and Eunos, which offer lower per-square-foot pricing (S$280–S$350) but sacrifice ceiling height, column-free spans, and contemporary building services such as fire-protection systems and safety compliance. On the premium end, newly completed or refurbished factory complexes in Loyang, Jalan Besar, and Woodlands command higher per-square-foot rates (S$420–S$500) but may require longer commutes for worker populations concentrated in central Singapore. The B2 Terrace Factory's positioning at approximately S$366 per sqft represents efficient value capture—it commands modest premiums to ageing stock whilst remaining below newly launched or ultra-premium addresses. From an operational perspective, its 5,048 sqft footprint and terrace design suit mid-sized manufacturing operations better than single-level walk-ups that restrict ceiling height or the mega-warehouses (50,000+ sqft) that require logistics-operator scale and capital. This development therefore competes most directly with similar-vintage terrace factories in Ubi, Macpherson, and eastern Paya Lebar.

Are certain unit stacks or floor levels in this terrace factory development more attractive for value or operational efficiency?

In a 40-footer terrace factory complex, ground-floor units typically command premium pricing and tenant preference due to superior loading accessibility, vehicle manoeuvrability, and operational convenience for goods-in/goods-out cycles. Ground-floor units avoid elevator dependencies and facilitate direct truck docking or forklift movements, reducing material handling time and operational friction. However, ground-floor occupancy sometimes carries marginally higher outgoings (common area charges, security, maintenance) and may experience lower privacy relative to upper floors. Upper-floor units (where the development features multi-storey sections) offer cost advantages—lower per-square-foot acquisition prices—and may suit lighter manufacturing, assembly, or administrative operations that do not require frequent vehicle access. From a capital appreciation perspective, ground-floor units typically hold value more resilently through property cycles, as their operational utility appeals to broader tenant pools, supporting both rental stability and future resale demand. First-time purchasers prioritising capital preservation should favour ground-floor allocations; investors optimising yield on a fixed budget may find upper-floor units attractive if rental discounts sufficiently compensate for operational limitations. Building configuration and specific floor layouts should be reviewed to determine actual unit stack performance relative to comparable terraces in the precinct.

What is the future supply outlook for factory space in Kaki Bukit and Paya Lebar, and could oversupply erode capital values?

The Kaki Bukit–Paya Lebar industrial precinct faces constrained future supply due to competing land demands from residential housing, retail, and logistics mega-warehouse development. Singapore's Urban Redevelopment Authority (URA) zoning designates this area primarily for retained industrial use, limiting conversion to higher-value residential or mixed-use projects. New purpose-built factory construction in this micromarket occurs at modest volumes—typically 5 to 15 units per year across all developments—as land scarcity and construction costs limit new-build economics. The supply pipeline for terrace factories specifically remains limited; most new industrial supply focuses on high-rise logistics warehouses (50,000+ sqft) in Loyang and the Island-wide manufacturing regions, not mid-sized terrace blocks. This structural supply tightness underpins long-term capital appreciation expectations, as SMEs and mid-sized manufacturers seeking terrace factory space face limited new-build alternatives and must therefore bid up prices for existing stock or accept relocation beyond Singapore's island-central locations. Conversely, the logistical revolution (e-commerce, just-in-time supply chains) continues to drive demand for light-industrial space in accessible, land-efficient formats—precisely the market the B2 Terrace Factory addresses. Oversupply risk is therefore low over a 5 to 10-year horizon; buyers can model capital appreciation expectations anchored to industrial land scarcity and sustained manufacturing-sector demand.

B2 Terrace Factory At Kaki Bukit — From S$1.9M