Type

Units

Min Area

Price Range

Other

96550 sqft

S$38.8M

Property Highlights

Commercial development with 1 unit currently available.
Prices currently start from S$38.8M.
For Singaporean second property buyers, ABSD applies at 20% of the purchase price, approximately S$7.8M on this acquisition.
Located 9 min (720 m) from DT27 Ubi MRT Station.

Price Trends & Rental Yield

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High Specifications Industrial Building at Ubi Avenue: A Prime Light Industrial Investment

The High Specifications Industrial Building situated at Ubi Avenue represents a significant commercial asset within one of Singapore's most strategically important industrial zones. Occupying approximately 96,550 square feet, this B1-classified light industrial facility has been designed and constructed to meet contemporary operational standards demanded by modern logistics, manufacturing, and distribution enterprises. The property's substantial built area and premium specifications position it as an attractive acquisition for both owner-operators and institutional investors seeking exposure to Singapore's robust industrial real estate market.

Ubi has emerged as a critical hub within Singapore's industrial landscape, characterised by its concentration of warehousing, light manufacturing, and logistics facilities. The district benefits from decades of urban planning focused on consolidating industrial activities in proximity to major transportation corridors and port facilities. This High Specifications Industrial Building capitalises on that established infrastructure, offering tenants immediate access to a mature ecosystem of complementary service providers, skilled labour pools, and supply chain partners. The building's B1 classification provides operational flexibility, permitting everything from light assembly and component manufacturing through to warehouse-based distribution operations and corporate facilities.

Connectivity and Market Access

The development enjoys proximity to Ubi MRT Station (DT27), situated approximately 720 metres or roughly 9 minutes on foot from the property. This nearness to the Downtown Line ensures that both staff commuting and commercial traffic flows benefit from reliable public transport linkages. For logistics and distribution tenants, the location provides strategic advantage in terms of workforce accessibility whilst maintaining reasonable proximity to Port Authority facilities and the southern expressway network. The MRT connectivity also enhances the property's appeal to potential occupiers seeking to optimise their operational cost base through reduced employee transport expenses.

Building Specifications and Operational Features

Modern light industrial occupiers increasingly demand facilities that integrate advanced building services, climate control systems, and operational infrastructure capable of supporting contemporary commercial requirements. This building has been specified to meet those contemporary benchmarks. The 96,550 square feet of net operational space can accommodate diverse tenant arrangements, from single large occupiers to multiple smaller units, depending on how the space is partitioned and configured. High-specification infrastructure typically encompasses robust electrical systems capable of supporting modern manufacturing equipment, adequate loading facilities for efficient goods movement, and building-wide climate or ventilation systems appropriate to the intended operational use.

The property's B1 light industrial classification is particularly valuable within Singapore's current regulatory environment, as it permits a broader spectrum of commercial activities than traditional industrial classifications whilst maintaining operational efficiency. Companies involved in precision manufacturing, technology assembly, food processing support services, pharmaceutical component production, and similar value-added activities find B1 zoning particularly conducive. This regulatory flexibility translates directly to a wider tenant pool and greater resilience against sectoral downturns affecting any single industry vertical.

Investment Characteristics and Market Position

Industrial real estate in Singapore has demonstrated sustained capital appreciation over extended holding periods, supported by structural factors including limited land availability, strong rental demand from regional multinational enterprises, and consistent capital inflows from institutional investors. The High Specifications Industrial Building at Ubi Avenue sits within a sub-market characterised by long-term occupier relationships and stable rental growth. Properties of this calibre, offering modern specifications within an established industrial zone, typically attract institutional-quality tenants with multi-year lease commitments and reliable payment histories.

Investors evaluating this property should consider the capital value dynamics of well-specified industrial assets within the Ubi precinct. Transaction volumes in this area reflect strong interest from both local and regional capital sources, with pricing typically reflecting the balance between capitalised rental income and replacement cost dynamics. The property's substantial built area and premium specifications generally command pricing that reflects its quality differentiation within the broader industrial market.

Regulatory and Tenure Considerations

Light industrial properties in Singapore operate within a clearly defined regulatory framework established by the Urban Redevelopment Authority and other relevant authorities. B1 classification provides occupiers and owners with certainty regarding permissible uses and operational boundaries. The property's tenure status and any ground lease arrangements should be carefully evaluated as part of the investment analysis, with particular attention to remaining lease duration, ground rent escalation provisions, and any specific use covenants that may affect long-term operational flexibility.

Market Demand Drivers and Sector Dynamics

Singapore's industrial real estate market continues to benefit from structural demand drivers including the nation's position as a major global logistics hub, the presence of sophisticated regional supply chain networks, and consistent inflows of foreign direct investment targeting manufacturing and distribution activities. The Ubi precinct, in particular, benefits from its concentration of complementary industrial facilities and service providers, creating a self-reinforcing ecosystem that attracts occupiers seeking operational synergies. Companies expanding regional operations or consolidating Singapore facilities frequently seek high-specification industrial space in established industrial zones, driving consistent tenant demand and supporting rental growth trajectories.

The High Specifications Industrial Building at Ubi Avenue represents a rare opportunity to acquire a substantial, modern light industrial asset within one of Singapore's premier industrial locations. Its combination of scale, specification quality, regulatory classification flexibility, and strategic location makes it particularly compelling for investors seeking long-term exposure to Singapore's industrial real estate fundamentals.

Frequently Asked Questions

What rental yield can be anticipated if this industrial building is acquired as a long-term investment?

Industrial real estate yields in the Ubi precinct typically range between 4% and 6% depending on tenant quality, lease duration, and market rental cycles. A property of this scale and specification quality positioned in an established industrial zone generally attracts institutional-quality tenants with multi-year lease commitments, supporting more stable, predictable rental income streams. Investors should analyse recent comparable transactions in the Ubi area to establish appropriate capitalisation rates, accounting for factors such as tenant creditworthiness, lease structure (whether fixed or escalation-based), and anticipated rental growth over the holding period. The property's B1 classification and premium specifications typically command rental premiums relative to older or lower-specification facilities in the same precinct.

How does pricing per square foot compare to recent transactions for similar industrial buildings in the Ubi area?

The Ubi industrial sub-market has experienced price appreciation over recent years, with modern, well-specified facilities commanding valuations in the range of approximately S$400 to S$500 per square foot depending on specific location, building condition, tenant profile, and lease characteristics. This property's substantial size, premium specifications, and strategic location within the established Ubi industrial corridor position it competitively within that range. Comparative market analysis should examine transaction data from the past 12 to 18 months involving similar-sized industrial facilities with comparable specifications and tenant characteristics. Properties with established institutional-quality tenancies typically trade at the higher end of range metrics, reflecting the value attributed to stable, predictable income streams.

What are the Additional Buyer's Stamp Duty implications for a Singapore Citizen purchasing this as a second property?

If a Singapore Citizen acquires this commercial industrial building as a second property (having previously purchased a residential property), Additional Buyer's Stamp Duty (ABSD) at the rate of 20% would apply to the purchase price. For a property valued at S$38.8 million, this would result in ABSD liability of approximately S$7.76 million in addition to standard stamp duty. However, ABSD is designed primarily for residential property acquisitions; commercial industrial properties may fall outside residential ABSD frameworks depending on specific tax classification and the property's primary operational use. Purchasers should seek professional tax and legal advice to clarify whether this B1-classified building would trigger ABSD liability under current Inland Revenue Authority of Singapore guidelines, as commercial industrial assets are sometimes treated differently than residential properties for stamp duty purposes.

Is lease decay and resale value depreciation a concern if this building is purchased on a leasehold basis?

The tenure structure of this property—whether freehold or leasehold with what remaining duration—significantly impacts long-term capital appreciation potential and resale marketability. Industrial properties with remaining lease tenure below 70 years may experience meaningful resale value attrition as institutional investors typically seek assets with 80+ years remaining. If this property operates under a leasehold structure, the specific ground lease duration, any rent escalation provisions, and options to renew or extend should be carefully evaluated. Many industrial properties in Singapore are held on relatively long-term ground leases (70 to 99 years), which provide sufficient tenure for institutional investment; however, buildings approaching the lower end of that range may face liquidity challenges and valuation discounts upon eventual sale, particularly if large capital expenditure renewal is required.

How does proximity to Ubi MRT Station (DT27) affect tenant demand and capital appreciation prospects?

MRT connectivity significantly enhances industrial property desirability by improving workforce accessibility and reducing employee transport costs, factors that occupiers actively value when evaluating facility locations. The 9-minute walk to Ubi MRT Station (DT27) on the Downtown Line positions this building favourably relative to more remote industrial sites, making it particularly attractive to larger occupiers requiring straightforward staff commuting options. Properties within immediate MRT proximity typically command rental premiums of 5% to 10% relative to comparable facilities located further from public transport, reflecting tenants' willingness to pay for operational efficiencies. Capital appreciation over extended holding periods tends to outperform for industrial buildings in close MRT proximity, as accessibility becomes increasingly valuable as Singapore's employment patterns shift toward greater reliance on public transport, enhancing long-term resale liquidity and investor demand.

What types of investor profiles are best suited to acquire this industrial building?

This High Specifications Industrial Building appeals to multiple investor archetypes, each with distinct strategic objectives. High-net-worth individuals and small investment partnerships seek industrial assets as alternative investment vehicles offering consistent rental income with lower volatility than residential property. Institutional investors—including pension funds, REITs, and dedicated industrial real estate funds—find buildings of this scale and specification attractive for portfolio diversification and income generation. Owner-operators seeking to consolidate corporate facilities or expand distribution capabilities may acquire this building for operational integration. First-time commercial property investors should recognise that industrial real estate involves longer holding periods, more complex tenant management, and more technical building systems than residential property, requiring either direct operational expertise or engagement of professional property management services. The property's substantial size, institutional-quality construction, and established market position make it most suitable for sophisticated investors with meaningful capital deployment capacity and professional property management infrastructure.

What are the typical financing headroom and Total Debt Service Ratio (TDSR) implications at the listed price point?

Commercial industrial property financing typically permits loan-to-value ratios between 60% and 75% depending on the lender, tenant quality, lease structure, and property specifications. At the property's valuation, a 70% LTV arrangement would support approximately S$27.16 million in borrowing, with the purchaser contributing roughly S$11.64 million in equity. TDSR assessments for commercial property financing generally operate differently than residential lending frameworks, focusing on debt service capability from anticipated rental income rather than borrower personal income. Based on projected rental income in the range of S$1.5 million to S$2.0 million annually from well-let space, TDSR ratios would typically fall within acceptable parameters for most institutional lenders. Purchasers should engage directly with commercial lending specialists to obtain formal pre-approval, as lending appetite, available terms, and rate structures vary considerably among financial institutions and depend heavily on tenant lease profiles and property-specific credit characteristics.

How does this building compare to competing industrial developments currently available in the Ubi precinct?

The Ubi industrial zone contains several modern industrial facilities and competing properties at various price points and specification levels. This High Specifications Industrial Building's principal competitive advantages include its substantial 96,550-square-foot footprint—suitable for large single occupiers or creative multi-tenant configurations—its high-specification construction supporting diverse operational uses, and its strategic location within the established industrial ecosystem. Competing developments may offer specific advantages including newer construction dates, specialized facilities (such as temperature-controlled storage), or unique operational features. Comparative advantage fundamentally derives from the balance between building quality, tenant profile, location factors, and pricing relative to capitalised rental income. Properties in the Ubi precinct positioned as institutional-quality assets with strong tenant covenants and stable long-term leasing typically outperform older facilities with weaker tenant profiles or more limited operational flexibility, justifying premium valuations that reflect their superior long-term capital appreciation prospects and more predictable income streams.

Are certain building levels or spatial configurations superior from a value and operational perspective?

Industrial building value typically derives from operational utility rather than aesthetic or lifestyle considerations that influence residential property valuations. For single-level light industrial facilities, ground floor location offers advantages for goods movement, loading access, and operational efficiency. If this 96,550-square-foot building comprises multiple floors or split-level configurations, ground-floor space typically commands premium rental rates due to reduced tenants' operational costs and enhanced accessibility. Upper floors may be valued at discounts ranging from 10% to 20% depending on loading facility access and the nature of intended operations. Flexible open-floor configurations permitting division into multiple tenant spaces typically generate superior returns compared to buildings with fixed structural partitions limiting adaptability. Value optimisation generally derives from maximising operational flexibility and adaptability to diverse tenant requirements rather than premium for specific floor levels or architectural aesthetics.

What future supply pipeline exists for industrial buildings in the Ubi and surrounding precincts?

Singapore's industrial real estate market faces structural constraints around land availability, particularly in established industrial zones like Ubi where land parcels suitable for new industrial development become progressively scarcer. Recent Urban Redevelopment Authority planning priorities have emphasised intensification of existing industrial zones and limited release of new industrial land, supporting supply constraints that favour existing modern facilities. The Ubi precinct specifically has experienced limited new industrial development in recent years, with most capacity expansion occurring through redevelopment of ageing facilities or adaptive reuse of existing structures. Future supply of high-specification light industrial buildings similar to this asset is likely to remain constrained, supporting longer-term capital appreciation and rental growth prospects. Investors should monitor URA Master Plan updates and industrial land sale announcements, as any significant new industrial supply targeting the Ubi precinct could influence longer-term rental growth trajectories, though the established industrial ecosystem and limited available sites make substantial new competition unlikely within the medium term.

Light Industrial At Ubi Avenue — From S$38.8M