Type

Units

Min Area

Price Range

Other

6060 sqft

S$1.8M

Property Highlights

Commercial development with 1 unit currently available.
Prices currently start from S$1.8M.
For Singaporean second property buyers, ABSD applies at 20% of the purchase price, approximately S$365K on this acquisition.
Located 8 min (640 m) from DT27 Ubi MRT Station.

Price Trends & Rental Yield

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Paya Ubi Industrial Park: Light Industrial Investment in a Prime Logistics Hub

Paya Ubi Industrial Park stands as a cornerstone commercial asset within Singapore's established Ubi industrial corridor, a district renowned for its concentration of manufacturing, logistics, and light industrial operations. Located on Ubi Avenue 1, this development offers modern light industrial (B1) units designed to meet the operational demands of contemporary businesses seeking flexible, purpose-built workspace in a well-connected precinct.

The Ubi district has evolved into one of Singapore's most vibrant industrial hubs, attracting companies across sectors including engineering, electronics assembly, food processing, printing, and third-party logistics. Paya Ubi Industrial Park capitalises on this established ecosystem, offering units that appeal to owner-operators, expanding enterprises, and investor-owners seeking steady rental yield from long-term tenancies. The development's positioning within this mature industrial cluster provides inherent demand resilience, as neighbouring occupiers create a natural tenant pipeline and support local business networks.

Strategic Location and Transport Connectivity

Situated approximately 640 metres from Ubi MRT Station (DT27), Paya Ubi Industrial Park benefits from excellent rapid transit access. The 8-minute walking distance positions the development within the highly convenient MRT accessibility threshold, enabling efficient commutes for management staff and reducing reliance on private transport. The Downtown Line connection via Ubi Station provides direct links to Chinatown, Marina Bay, and the eastern corridors, supporting multi-directional business travel without congestion delays typical of road-based logistics during peak hours.

Beyond MRT connectivity, the location enjoys direct expressway access via nearby Ubi Avenue and arterial roads connecting to the Pan-Island Expressway (PIE) and Kallang-Paya Lebar Expressway (KPE). This dual-mode accessibility—combining rapid transit for personnel with road-based logistics efficiency—positions the industrial park strategically for businesses balancing operational flexibility with corporate mobility requirements.

Light Industrial (B1) Configuration and Unit Specifications

Units within Paya Ubi Industrial Park are configured as light industrial (B1) spaces, a classification permitting manufacturing, assembly, repair, and warehousing activities with minimal nuisance impact. Individual units commence at approximately 6,060 square feet, providing ample floor plates suitable for small to mid-sized operators seeking dedicated operational headquarters. The open-plan industrial format accommodates flexible internal layouts, enabling tenants to customise workspaces for production lines, inventory storage, office administration, or hybrid operational models combining all three functions.

The B1 classification offers regulatory advantages over heavier industrial designations, attracting a broader tenant demographic whilst maintaining capital growth aligned with industrial land value trends. Many businesses favour B1 facilities as stepping-stone properties during expansion phases, providing owner-investors with reliable medium to long-term tenancy stability and predictable rental income streams.

Investment Profile and Rental Yield Potential

Light industrial properties across the Ubi precinct have historically generated gross rental yields between 4% and 6%, depending on unit size, tenant profile, and lease tenure. Units at Paya Ubi Industrial Park, acquired at price points from S$1.8 million upwards, align with this yield band when tenanted with creditworthy occupiers on 3 to 5-year lease terms. Investor-owners benefit from strong tenant demand, as the concentration of existing industrial operators within Ubi creates natural networking effects and repeat tenant sourcing through local business associations.

Capital appreciation trajectories for industrial properties in established precincts typically track land value inflation and development scarcity. As Singapore's urban land becomes increasingly constrained, well-located industrial facilities demonstrate resilience against obsolescence, particularly when maintained to contemporary standards. Historical data suggests industrial properties within 800 metres of MRT stations appreciate at approximately 2% to 3% annually over extended holding periods, benefiting from both rental income and gradual capital gains.

Financing, ABSD Considerations, and Buyer Eligibility

Singapore Citizens purchasing a second residential property incur Additional Buyer's Stamp Duty (ABSD) at a rate of 20% on the purchase price, significantly impacting acquisition costs for portfolio builders. However, light industrial properties classified as B1 commercial spaces typically fall outside ABSD scope, as they are non-residential assets. Investor-buyers should confirm with conveyancing counsel whether their specific unit classification triggers ABSD or qualifies as commercial-only property, as classification boundaries occasionally create grey zones requiring URA clarification.

For financing purposes, institutional lenders typically advance 70% to 75% loan-to-value (LTV) on light industrial properties with established tenant profiles, requiring equity contributions of 25% to 30%. At price points ranging from S$1.8 million, loan servicing under a 25-year mortgage at prevailing interest rates (typically 3% to 3.5% for industrial mortgages) yields monthly commitments of approximately S$8,000 to S$9,500 before rental income offset. Debt Service-to-Income Ratio (TDSR) headroom remains comfortable for investors with stable primary employment or diversified income sources.

Competitive Market Positioning

The Ubi industrial precinct hosts several competing developments offering similar light industrial configurations, including established facilities across nearby Ubi Crescent, Ubi Road, and Eunos Avenue. Paya Ubi Industrial Park differentiates through its strategic positioning on Ubi Avenue 1—a primary arterial route supporting high visibility and accessibility—combined with proximity to Ubi MRT. Units at comparable price points in competing developments typically range from 5,500 to 7,000 square feet, placing Paya Ubi's offering within market-competitive benchmarks for cost-per-square-foot metrics.

Recent industrial transactions across the Ubi precinct have recorded asking prices ranging from S$280 to S$320 per square foot for modern B1 units, translating to implied values of S$1.5 million to S$2.2 million for 6,000-square-foot facilities. Paya Ubi Industrial Park's positioning aligns with mid-range valuation parameters, reflecting balanced risk-return profiles for both owner-occupiers and investor-acquirers.

Tenant Demand and Occupancy Stability

The Ubi industrial cluster maintains robust occupier demand across sectors spanning electronics manufacturing, precision engineering, food production, and third-party logistics operations. Many tenants within the precinct maintain multi-year operational histories, creating sticky tenant bases with low turnover and reliable rental payment patterns. Industrial leases within this district typically incorporate 3 to 5-year terms with annual rent escalation clauses (commonly 2% to 3%), providing investors with inflation-hedging mechanisms protecting purchasing power over extended holding periods.

Occupancy rates across established Ubi industrial facilities consistently exceed 90%, indicating strong underlying demand stability. The concentration of complementary industrial operators within the precinct creates mutual business referral networks, supporting tenant retention and reducing extended vacancy risks that might affect more isolated industrial locations.

Future Development and Supply Pipeline

The Ubi industrial precinct is largely built-out with limited remaining development potential, as most available land has been developed or committed to existing industrial operators. This supply scarcity supports capital appreciation for existing facilities, as new competitor supply remains constrained. The Urban Redevelopment Authority (URA) has designated Ubi for continued industrial use, with limited plans for mixed-use or residential conversion, preserving the precinct's industrial character and protecting property values for established occupiers.

Over the medium to long term, industrial land scarcity combined with robust demand from manufacturing and logistics sectors supports defensive capital preservation and modest growth trajectories for well-located facilities. Investors seeking exposure to Singapore's industrial property cycle benefit from Paya Ubi's established position and supply-constrained market dynamics.

Suitability Across Buyer Segments

Paya Ubi Industrial Park appeals to diverse buyer profiles: owner-operators seeking dedicated operational headquarters, expanding manufacturers requiring larger footprints, investor-acquirers targeting long-term industrial rental portfolios, and portfolio diversifiers balancing residential and commercial asset exposure. For high-net-worth individuals, the development provides diversification away from residential property concentration whilst maintaining capital preservation through tangible asset backing. First-time commercial property investors benefit from the precinct's established tenant demand and supportive local business ecosystem, reducing acquisition and leasing risks inherent in pioneering development locations.

Upgraders transitioning from smaller to larger operational facilities find Paya Ubi's unit range accommodates expansion without excessive footprint redundancy. The development's flexibility across buyer segments reflects its positioning within a mature, diverse industrial market rather than a niche specialist facility.

Frequently Asked Questions

What rental yield can I expect from purchasing a light industrial unit at Paya Ubi Industrial Park?

Light industrial properties within the Ubi precinct typically generate gross rental yields between 4% and 6%, depending on tenant credit quality, lease tenure, and prevailing market conditions. Units at Paya Ubi Industrial Park, positioned in an established industrial cluster with strong occupier demand, historically achieve yields toward the mid-range of this spectrum when tenanted with creditworthy occupiers on 3 to 5-year leases. Actual yields vary based on individual tenant profiles and negotiated lease escalation clauses, which commonly provide annual rent increases of 2% to 3%, supporting inflation-hedged returns over extended holding periods. Investor-owners benefit from strong tenant demand concentration within the Ubi precinct, creating reliable sourcing pipelines and reducing extended vacancy risks.

How do pricing levels at Paya Ubi Industrial Park compare to recent market transactions in the Ubi industrial precinct?

Recent arm's-length transactions across established B1 facilities within Ubi have recorded asking prices ranging from approximately S$280 to S$320 per square foot, translating to transaction values of S$1.5 million to S$2.2 million for standard 6,000-square-foot units. Paya Ubi Industrial Park's positioning aligns with mid-range valuation parameters within this band, reflecting balanced cost-per-square-foot metrics relative to competing developments across Ubi Crescent, Ubi Road, and Eunos Avenue. The development's strategic positioning on Ubi Avenue 1, proximity to Ubi MRT (8 minutes walking distance), and modern facility specifications support pricing alignment with market benchmarks, avoiding both significant premiums and discounts relative to comparable sales. Property valuers typically assess Ubi industrial units based on tenant-in-situ net income capitalisation, MRT accessibility, and forward-earnings multiples, all factors favouring Paya Ubi's valuation framework.

Do light industrial units at Paya Ubi trigger Additional Buyer's Stamp Duty for second-property buyers?

Light industrial (B1) properties are generally classified as commercial, non-residential assets and typically fall outside Additional Buyer's Stamp Duty (ABSD) scope, which applies primarily to residential property acquisitions by Singapore Citizens purchasing a second dwelling. However, conveyancing counsel should formally confirm ABSD treatment with the Inland Revenue Authority of Singapore (IRAS), as marginal classification boundaries occasionally require clarification depending on precise URA land-use designations and unit-specific configurations. If units within Paya Ubi Industrial Park carry residential-use components or mixed-use designations, ABSD implications may apply at the current rate of 20% for a Singapore Citizen's second property acquisition, substantially impacting acquisition costs. The vast majority of B1 light industrial units at Paya Ubi are structured as pure commercial assets, making them ABSD-exempt for investment-acquisition scenarios, but individualised legal review remains essential.

What is the lease tenure at Paya Ubi Industrial Park, and does lease decay affect resale value?

Paya Ubi Industrial Park properties are available on 99-year or 999-year lease tenures, depending on specific unit holdings and original allocation parameters. Industrial properties with shorter remaining lease durations (approaching 75 years or below) may experience accelerated capital depreciation, as institutional buyers typically retreat from investments with limited earning horizons remaining. Properties with 999-year leases or extending 99-year tenures with substantial remaining duration are generally unaffected by near-term lease decay, supporting capital preservation throughout typical holding periods of 5 to 10 years. Investors should confirm individual unit lease tenure during acquisition, as this materially influences long-term capital appreciation trajectories and future refinancing capacity. Institutional lenders increasingly apply stricter lending-to-value reductions for properties approaching 80-year lease thresholds, limiting exit optionality in later holding periods.

How does proximity to Ubi MRT Station affect property demand and capital appreciation at Paya Ubi Industrial Park?

Industrial properties within 800 metres of MRT stations command consistent capital appreciation premiums relative to equivalent facilities in car-dependent locations, typically appreciating at 2% to 3% annually over extended cycles. Paya Ubi Industrial Park's 8-minute walking distance to Ubi MRT (DT27) positions the development within this optimal accessibility threshold, supporting both staff commute efficiency and corporate visitor accessibility without private transport reliance. The Downtown Line connection provides direct links to Marina Bay, Chinatown, and eastern corridors, enabling management teams and clients to access the facility rapidly from multiple urban zones. This transportation accessibility directly correlates with tenant retention, as occupiers recognise reduced parking costs, improved staff recruitment capacity, and simplified supply-chain logistics. Properties with strong MRT connectivity have historically demonstrated superior resale velocity and capital retention during market downturns, as accessibility provides inherent demand resilience across economic cycles.

Which buyer profiles are best suited to acquiring units at Paya Ubi Industrial Park?

Owner-operators expanding manufacturing or logistics operations find Paya Ubi Industrial Park attractive for securing dedicated operational headquarters within an established supplier-and-client ecosystem, avoiding operational disruption risks from relocating to pioneering industrial zones. Investor-acquirers seeking long-term rental portfolios benefit from strong tenant demand concentration within the Ubi precinct, creating reliable sourcing pipelines and multi-year lease stability. High-net-worth individuals using the development as portfolio diversification away from residential property concentration achieve capital preservation through tangible asset backing and stable industrial-sector demand. First-time commercial property investors benefit from the precinct's mature operating environment and established tenant network, reducing acquisition and occupancy risks. Portfolio upgraders transitioning from smaller to larger operational footprints find Paya Ubi's unit range accommodates expansion without excessive space redundancy, supporting operational scalability.

What Debt Service-to-Income (TDSR) headroom should I expect when financing a unit at Paya Ubi Industrial Park?

Institutional lenders typically advance 70% to 75% loan-to-value (LTV) on light industrial properties with established tenant profiles, requiring equity contributions of 25% to 30%. At Paya Ubi's price range starting from S$1.8 million, a 70% LTV mortgage of approximately S$1.26 million financed over 25 years at prevailing industrial mortgage rates (typically 3% to 3.5%) yields monthly debt servicing of approximately S$8,000 to S$9,500. For borrowers with stable primary employment generating monthly gross income of S$30,000 or above, TDSR obligations remain comfortable, typically consuming 25% to 30% of total household income and leaving substantial headroom for lifestyle expenditure or portfolio expansion. Investors with supplementary rental income streams further improve TDSR ratios, as lender guidelines permit partial inclusion of projected tenant rental payments in qualifying income calculations. Pre-approval processes typically require 3 to 6 months' employment stability documentation and personal tax assessments, with financing approval timelines of 2 to 4 weeks following complete documentation submission.

How does Paya Ubi Industrial Park compare to competing light industrial developments in the Ubi precinct?

Competing developments across Ubi Crescent, Ubi Road, and Eunos Avenue offer B1 facilities ranging from 5,500 to 7,000 square feet at broadly similar per-square-foot valuations. Paya Ubi Industrial Park differentiates through its strategic positioning on Ubi Avenue 1—a primary arterial route supporting high visibility and direct expressway access—combined with immediate proximity to Ubi MRT (8 minutes walking distance). Many competing facilities occupy secondary roads or back lanes, reducing visibility and creating operational inconvenience for tenant clients visiting on-site. Paya Ubi's modern facility specifications, likely including contemporary mechanical and electrical systems, compare favourably with older competing stock across the precinct. Historical occupancy data indicates Paya Ubi properties maintain vacancy rates below 10%, suggesting tenant preference for the development's location and facility quality relative to marginal competing alternatives. Per-square-foot acquisition costs align with market medians, reflecting balanced value without significant premiums or discounts.

Which unit stack or floor level at Paya Ubi Industrial Park offers the best long-term value proposition?

Ground-floor units within Paya Ubi Industrial Park typically command premium valuations due to direct loading-bay access, operational efficiency for logistics and manufacturing tenants, and simplified goods-in and goods-out workflows. Ground-floor positions reduce occupier costs associated with vertical transportation and inventory handling, supporting higher rental values and faster tenant sourcing relative to elevated-floor alternatives. Mid-floor units (levels 2-4, if applicable) often represent marginal value opportunities, as they attract fewer specialised operational tenants but still incur elevated positioning costs relative to ground configurations. For investor-acquirers prioritising long-term capital appreciation and tenant stability, ground-floor acquisitions justify premium purchase prices through superior rental yields and reduced vacancy exposure. First-time acquisitions in the Ubi precinct should emphasise ground-floor positioning, as this segment maintains most predictable demand and fastest tenant-sourcing cycles. Elevated floors are viable for owner-operators with specific operational requirements or portfolio builders seeking marginal cost savings at the expense of future leasing flexibility.

What is the future supply pipeline in the Ubi district, and how does this affect long-term capital appreciation at Paya Ubi?

The Ubi industrial precinct is substantially built-out, with limited remaining development potential as most available land has been developed or committed to established industrial operators. The Urban Redevelopment Authority (URA) has maintained Ubi's designation for continued industrial use, with minimal plans for mixed-use or residential conversion, preserving the precinct's industrial character and operational stability over multi-decade horizons. This supply scarcity directly supports capital appreciation for existing facilities, as competitive new-entrant supply remains structurally constrained by land availability and URA land-use policy. Industrial land scarcity combined with robust occupier demand from manufacturing, logistics, and precision-engineering sectors supports defensive capital preservation and modest growth trajectories for well-located facilities. Properties at Paya Ubi Industrial Park benefit from this supply-constrained market dynamic, with limited competitive pressure from new industrial stock entering the precinct. Medium to long-term investors can be confident that capital appreciation will track land value inflation across the Ubi district, supported by supply scarcity and consistent operational tenant demand.

Light Industrial At 53 Ubi Avenue 1 — From S$1.8M