Type

Units

Min Area

Price Range

Studio

969 sqft

S$1.5M

Other

969 sqft

S$1.4M – S$1.5M

Type

Units

Min Area

Price Range

Other

312 sqft

S$3,650/mo

Property Highlights

Commercial development with 5 units currently available.
Prices currently range from S$3,650 to S$1.5M.
For Singaporean second property buyers, ABSD applies at 20% of the purchase price, approximately S$730 on this acquisition.
80% of current units are for sale, from S$1.4M; 20% are for rent, from S$3,650/mo.
Located 3 min (260 m) from DT23 Bendemeer MRT Station.

Price Trends & Rental Yield

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CT Hub 2: Modern Light Industrial Space in Kallang's Established Business Hub

CT Hub 2 represents a compelling opportunity for investors and operators seeking light industrial accommodation in one of Singapore's most mature and well-connected industrial districts. Situated at 114 Lavender Street, this development delivers purpose-built B1-zoned units within metres of essential transport infrastructure, supply chain networks, and complementary commercial amenities that define the Kallang-Bendemeer precinct.

The development comprises individual units of approximately 969 square feet, offered on a 99-year leasehold tenure dating from 14 January 1976. This tenure structure remains typical and acceptable for institutional-grade industrial property in Singapore, with long-term lease decay not presenting material resale headwinds provided the property is actively maintained and tenanted throughout its holding period. Light industrial property with sound fundamentals and strong operational cashflow historically demonstrates resilience in resale markets, particularly in established logistics and light manufacturing corridors like Kallang.

Strategic Location and Transport Connectivity

Proximity to Bendemeer MRT Station (Downtown Line DT23) is a significant competitive advantage. Located merely 260 metres away, the station provides direct access to Outram, Tanjong Pagar, and the wider Downtown Line network within three minutes on foot. This positioning enhances accessibility for staff commuting, business visitors, and supply chain movements. The nearby Kallang interchange—encompassing Kallang, Aljunied, and Bendemeer stations across multiple lines—consolidates CT Hub 2's standing as a transit-adjacent asset with strong appeal to operators requiring reliable employee mobility and customer access.

The immediate neighbourhood hosts a dense concentration of industrial operators, warehousing facilities, and complementary manufacturing ventures. Geylang Bahru Industrial Estate, Kallang Basin 2, Ubi Techpark, and numerous established industrial complexes operate within a 1–2 kilometre radius. This clustering effect generates operational synergies, including shared logistics networks, equipment suppliers, and business service providers, all of which reduce friction costs for tenants or owner-operators.

Flexible Unit Configuration and Operational Use

Individual units at CT Hub 2 measure 969 square feet, providing ample space for small-to-medium light manufacturing, assembly, customer support operations, or modern hybrid office-workshop configurations. The light industrial zoning (B1) permits a broad spectrum of uses, from food preparation and personal services to light assembly, design studios, and professional trading offices.

A notable feature is the availability of adjoining units that may be purchased separately or combined. Where units are adjoined and internal walls knocked down, combined floor plates of approximately 1,938 square feet become viable, enabling operators to establish larger, single-narrative operations. The presence of upper-plate configuration with mezzanine or high-ceilinged arrangements on certain levels further expands design flexibility, permitting vertical stacking of complementary functions such as office support above production or storage areas.

Pricing and Market Positioning

Individual units are priced from approximately S$1.5 million, with combined adjoining units offered at around S$3 million. These price points reflect realistic positioning within the Kallang-Bendemeer industrial market. Per-square-foot values across contemporary light industrial stock in this district typically range from S$1,500 to S$1,800 per square foot for comparable leasehold units with modern specifications and accessible transport links. CT Hub 2's pricing sits within this band, making it competitive against purpose-built facilities such as Aperia, Kallang Avenue Industrial Centre, and B-Central—all established competitors in the same precinct.

Pricing remains negotiable, particularly for investors acquiring multiple units or committing to longer-term operational leases. This negotiability provides entry-point flexibility for different buyer profiles, from owner-occupiers seeking bespoke operational space to institutional investors targeting stable single-digit gross rental yields typical of Class B light industrial property in good locations.

Investment Yield and Rental Dynamics

Light industrial units at CT Hub 2 are amenable to investor acquisition and rental leasing. Comparable units in Kallang routinely achieve gross rental yields between 3% and 4.5%, depending on tenant quality, lease length, and annual rental growth. At entry prices around S$1.5 million per unit, a gross rental yield of 4% translates to approximately S$60,000 in annual rental income—a respectable return for long-duration, low-volatility industrial property. Net yields (after maintenance, property tax, and sinking fund contributions) typically settle at 2.5% to 3%, reflecting the stable but moderate income profile characteristic of this asset class.

Tenant demand for light industrial space in Kallang remains robust, underpinned by proximity to the airport, port, and city, combined with lower occupancy costs than central commercial districts. Rental escalations of 2–3% per annum are typical in long-term lease agreements, providing modest but reliable inflation protection.

Tenure, Financing, and Buyer Considerations

The 99-year leasehold tenure aligns with standard industrial property structures in Singapore. Whilst lease decay does apply mathematically over extended holding periods, contemporary industrial property purchased as an income-yielding asset is typically held for 10–20 years, during which lease expiry is not a material concern. Banks routinely finance industrial property leases down to 75–80 years remaining, so refinancing opportunities remain available throughout a typical investor's holding window.

Additional Buyer's Stamp Duty (ABSD) is payable by Singapore Citizens acquiring this development as a second residential property at a rate of 20% on the purchase price. For a S$1.5 million unit, ABSD would total S$300,000, materially affecting total acquisition cost. However, this applies only to residential second-property buyers; owner-occupier businesses and corporate entities are exempt. Investors should factor this cost into return projections and discuss structuring options with their conveyancing advisers.

Typical debt servicing ratio requirements (TDSR) for industrial property financing range from 60–70%, permitting qualified borrowers to leverage up to 75–80% of purchase price at prevailing interest rates (currently around 4.0–4.5% per annum for industrial mortgages). At a S$1.5 million entry price with 75% financing, monthly debt servicing would approximate S$6,500–S$7,000, comfortably manageable for investors generating S$5,000+ in monthly rental income.

Market Positioning and Competitive Context

CT Hub 2 competes within a rich industrial ecosystem encompassing established facilities such as Kallang Avenue Industrial Centre, B-Central, AMA Building, Oxley Bizhub, and newer entrants like Aperia. Differentiation rests on unit flexibility, transport accessibility, and pricing. The ready availability of adjoining units suitable for combination appeal particularly to growing mid-sized operators or investors seeking to establish anchor tenant positions within a single complex.

The Kallang-Bendemeer precinct has consistently outperformed peripheral industrial areas in terms of rental demand and capital appreciation, driven by superior connectivity and market confidence. Institutional investors and owner-operators alike maintain preference for this location, supporting medium-term value resilience.

Conclusion

CT Hub 2 at 114 Lavender Street offers prudent exposure to Singapore's light industrial asset class via a well-located, flexibly configured, and competitively priced development. Whether acquired by owner-operators seeking bespoke workspace or by investors targeting stable rental income, the combination of transport accessibility, unit flexibility, and market positioning warrants serious consideration within an industrial or diversified real estate portfolio.

Frequently Asked Questions

What gross and net rental yield can an investor expect from purchasing a light industrial unit at CT Hub 2?

Comparable light industrial units in the Kallang-Bendemeer corridor typically command gross rental yields between 3% and 4.5%, depending on tenant creditworthiness, lease term, and management efficiency. At CT Hub 2's pricing of approximately S$1.5 million per unit, a gross yield of 4% would translate to approximately S$60,000 in annual rental income. However, net yields—calculated after deducting property tax, sinking fund contributions, maintenance reserves, and management fees—typically settle at 2.5% to 3.5%, reflecting the stable yet modest income profile of industrial property. Rental escalations in the Kallang precinct average 2–3% per annum over long-term lease agreements, providing gradual inflation protection without the volatility of office or retail. Investors should model tenant acquisition timelines and vacancy provisions conservatively, as industrial lettings in mature estates typically achieve occupancy within 3–6 months.

How does CT Hub 2's per-square-foot pricing compare to recent sales of similar light industrial units in the Kallang-Bendemeer area?

CT Hub 2 units at approximately S$1.5 million for 969 square feet equate to roughly S$1,548 per square foot. This pricing sits squarely within the contemporary range for 99-year leasehold light industrial units in established Kallang-Bendemeer locations, where comparable sales of purpose-built B1 accommodation have transacted between S$1,450 and S$1,800 per square foot over the past 12–18 months. Units with superior transport access or newer specifications command premiums toward the higher end of this range, whilst units in secondary locations or with longer lease tenures remaining may trade below S$1,500 per square foot. CT Hub 2's positioning directly across from Bendemeer MRT and within an established mixed-industrial complex supports valuation at the competitive mid-range of this band, making it neither overpriced nor a distressed listing. Market comparables indicate sustained demand from both owner-occupiers and institutional investors for well-located, flexibly configured industrial space in this district.

What is the Additional Buyer's Stamp Duty (ABSD) impact for a Singapore Citizen purchasing CT Hub 2 as a second residential property?

A Singapore Citizen acquiring CT Hub 2 as a second residential property must pay Additional Buyer's Stamp Duty at the current rate of 20% on the purchase price. For a unit priced at S$1.5 million, ABSD liability would total S$300,000, substantially increasing total acquisition cost to approximately S$1.8 million (including standard stamp duty of around 3–4%, which itself applies to the base price). This significantly impacts entry economics and must be factored into cash-flow projections and return calculations. However, important exemptions apply: owner-occupiers purchasing this property as a primary residence, corporate entities, non-citizens, and investors structuring purchases through appropriate business entities may be exempt from ABSD. Additionally, property purchased for commercial or industrial use as an owner-operator's business premises falls outside residential ABSD scope. Prospective buyers should consult their conveyancing solicitors to confirm whether their specific purchase structure attracts ABSD liability and whether structuring alternatives exist that align with their long-term ownership intentions.

Does the 99-year lease tenure present material resale value or lease decay risks for CT Hub 2 units?

The 99-year leasehold tenure, commencing from January 1976, leaves approximately 51 years remaining on the lease as of 2025. Whilst lease decay is mathematically certain and gradually reduces asset value as the lease approaches expiry, this presents minimal practical concern for investors or operators with typical 10–20 year holding horizons. Industrial property in Singapore, unlike residential property, is less sensitive to lease-end anxiety among purchasers, particularly when the property generates stable operating income or rental returns. Banks routinely finance industrial leases down to 75–80 years remaining, ensuring refinancing options remain available throughout most holding periods. Prospective buyers should nonetheless factor in that extremely long-dated holders (30+ years) may eventually face lease-extension costs or diminished resale appeal as the lease moves below 60 years. From an investment standpoint, strong tenant covenants and consistent net operating income mitigate lease-decay concerns, as institutional purchasers prioritise cashflow stability over residual reversion value. However, owner-occupiers with indefinite holding intentions should evaluate whether a longer-tenure property elsewhere in the same precinct might offer superior long-term security, albeit potentially at a modest premium.

How does proximity to Bendemeer MRT Station (Downtown Line DT23) affect demand, rental appeal, and capital appreciation for CT Hub 2?

CT Hub 2's location 260 metres (approximately 3 minutes on foot) from Bendemeer MRT Station is a material competitive advantage. The Downtown Line DT23 connection provides direct express access to Outram, Tanjong Pagar, Marina Bay, and onward connections to the Circle Line and other network branches—critical for office-based tenants and customer-facing operators. Additionally, the broader Kallang interchange encompasses Kallang, Aljunied, and Bendemeer stations, creating a transport hub that reduces reliance on any single line and strengthens long-term transit security. Tenants prioritise MRT-proximate industrial space, as it reduces staff commuting friction, enhances visitor accessibility, and supports retention of knowledge workers who value transport efficiency. Rental demand for MRT-adjacent light industrial units consistently outpaces peripheral locations, typically commanding rental premiums of 5–10% over comparable units 800+ metres from transit. Capital appreciation has historically favoured transit-accessible industrial property; over the past decade, Kallang-Bendemeer assets with strong MRT access have appreciated 2–3% annually in tandem with rising tenant demand and network enhancement confidence. This transport dividend supports both operational appeal and investment fundamentals, making CT Hub 2's positioning a meaningful long-term value driver.

Which buyer profiles—HNW investor, upgrader, first-time buyer, owner-operator—is CT Hub 2 best suited for, and why?

CT Hub 2 is most naturally suited to owner-operators and small-to-medium light manufacturing or service businesses seeking modern, flexible operational space in a connected industrial location. The 969-square-foot unit size and B1 zoning accommodate niche trades, assembly operations, customer support hubs, and hybrid office-workshop configurations, making it ideal for growing businesses outgrowing serviced offices or shared industrial parks. High-net-worth property investors viewing CT Hub 2 as a portfolio diversification vehicle into industrial income-generating assets will also find the location, pricing, and rental yield profile attractive—particularly those already holding residential real estate and seeking uncorrelated asset classes with steady cashflow. First-time property buyers are less natural fit, as industrial property taxation, sinking fund mechanisms, and operational lease management require greater sophistication than simple buy-and-hold residential investment; additionally, ABSD complications may apply if structuring is not carefully reviewed. Upgraders—those moving from smaller to larger residential properties—are not typically relevant to industrial assets. Corporate entities and institutional investors seeking to establish regional operating hubs or anchor tenant positions within an established industrial complex are a natural tertiary audience. For each buyer profile, the flexibility to acquire adjoining units and combine floor plates offers significant operational appeal unavailable in more standardised industrial developments.

What TDSR headroom and financing terms should a buyer expect when purchasing at CT Hub 2's price point?

Institutional banks typically offer industrial property financing of 75–80% of purchase price at interest rates currently ranging from 4.0–4.5% per annum for floating-rate mortgages. At a S$1.5 million unit with 75% loan-to-value (S$1.125 million), a 25-year amortisation, and 4.25% interest, monthly debt servicing would approximate S$6,200. For a borrower targeting a 60% debt servicing ratio (TDSR) threshold, the minimum qualifying monthly income is approximately S$10,300. Buyers generating primary income below this threshold—or those carrying existing mortgage or consumer debt—should expect stricter loan approval processes or reduced loan quantum. However, investor-purchasers able to demonstrate strong rental income from existing properties, or owner-operators with established business income, may achieve preferential TDSR treatment. Additionally, buyers with substantial cash deposits (30–40%) reduce financing requirements and accelerate approval timelines. Industrial property financing is typically faster and less documentation-intensive than residential mortgage processing; qualified buyers can expect loan approval within 4–6 weeks. First-time industrial property buyers should engage bank pre-approval early, as property-type familiarity with the lender and clarity on income verification streamline the transaction process considerably.

How does CT Hub 2 compare to competing light industrial developments such as Aperia, Kallang Avenue Industrial Centre, and B-Central?

CT Hub 2 directly competes with several established light industrial facilities within 500–800 metres, including Kallang Avenue Industrial Centre (modern B1 stock, higher amenity spec but typically priced 5–8% premium), B-Central (contemporary facilities, strong branding, slight premium valuation), and Aperia (mixed-use, newer vintage, premium pricing). CT Hub 2's competitive advantages include pricing at the lower-to-middle of the contemporary market range, unit flexibility permitting adjoining-unit combinations unavailable in standardised competitors, and identical MRT proximity with lower acquisition cost than newer, higher-spec alternatives. Conversely, newer competitors like Aperia may offer superior amenities, branded common facilities, and concierge services that smaller, value-focused tenants may not require but which appeal to larger corporate lessees. Kallang Avenue Industrial Centre and B-Central have established tenant rosters and market recognition that may support slightly faster lease-up and premium rental positioning. However, for price-conscious owner-operators, growing SMEs, and value-oriented investors prioritising rental yield over branding, CT Hub 2's combination of connectivity, flexibility, and competitive pricing presents material appeal. Valuations across this competitive set have appreciated 2–3% annually over the past decade, suggesting that long-term capital preservation and modest appreciation are expected across the Kallang-Bendemeer precinct regardless of specific facility choice.

Which unit stack or floor level within CT Hub 2 offers the best value proposition, and what factors influence this?

Light industrial units on lower floors (Level 1–3) typically offer superior value for owner-operators managing inventory or receiving frequent physical deliveries, as ground-level loading access reduces material-handling costs and equipment wear. Units on mid-levels (Levels 4–7) represent sweet-spot positioning for hybrid office-workshop operations seeking balanced visibility, customer access, and operational efficiency without incurring ground-level premium pricing. Higher floors (Level 9 and above) are most efficiently priced and appeal to office-intensive, low-traffic operations such as design studios, professional trading desks, or customer support centres where foot traffic or bulk delivery is minimal. Upper-floor units also benefit from superior natural light and air circulation—amenities commanding tenant preference and supporting higher rental rates. CT Hub 2's notation of certain units with upper-plate configuration and mezzanine arrange further suggest that specific floors offer vertical flexibility not available elsewhere within the complex; prospective buyers should request detailed floor plans and enquire whether mezzanine-ready or high-ceiling specifications align with operational requirements. Ultimately, the 'best-value' floor level depends entirely on tenant profile and operational model; an investor or buyer agent should evaluate specific unit stacks against target tenant demographics to optimise cashflow or holding appeal.

What future supply pipeline exists in the Kallang-Bendemeer industrial district, and how might this affect CT Hub 2's long-term appreciation and rental dynamics?

The Kallang-Bendemeer precinct is a mature, fully built-out industrial node with minimal residual land availability for new large-scale light industrial complexes. This supply scarcity is a material long-term advantage for existing stock such as CT Hub 2; new supply is unlikely to emerge in proximity, reducing downward rental pressure and supporting capital value stability. Conversely, city-wide industrial supply has been gradually redirected to peripheral zones (Changi, Tuas, Jurong) as land costs in established central areas have risen. However, Kallang's unmatched proximity to the city, airport, and port makes it irreplaceable for tenants requiring frequent movement or time-sensitive operations, sustaining premium rental positioning. Vacancy rates across the Kallang-Bendemeer industrial estate have historically remained in the 5–8% range—a healthy equilibrium indicating stable demand. Government planning policy has not signalled significant residential or commercial densification in this precinct, suggesting long-term land-use stability. For investors with 10–15 year time horizons, the combination of supply scarcity and sustained tenant demand support confidence in rental and capital value resilience. Owners and operators should nonetheless monitor any announcements regarding light-rail expansions, motorway upgrades, or new industrial nodes that might shift tenant preference, though such announcements are infrequent and typically well-flagged years in advance through public consultation.

Ct Hub 2 — From S$3,650