Your search results

Top 5 : Key Reasons to Invest in Industrial Property in Singapore

Posted by Jayson Ang on February 15, 2025

| 0

Singapore, a small yet densely populated country, has emerged as a significant player in the global industrial property market. Its strategic location, robust economy, and favorable business environment have made it an attractive destination for investors looking to diversify their portfolios.

Will delve into the top five reasons why investing in industrial property in Singapore is a wise decision.

1. High Rental Yields:

One of the primary reasons to invest in industrial properties in Singapore is the potential for higher rental yields. Compared to residential properties, which typically offer rental yields between 2% to 5%, commercial properties in Singapore can yield between 5% to 10%. This significantly higher return on investment makes industrial properties an attractive option for investors seeking steady income streams.

2. Stable Market Outlook:

Despite the deteriorating business sentiment globally, the outlook for industrial and logistics properties in Singapore remains stable. The cautious price and rental growth of 1% to 3% for most industrial property types in 2023 indicates a resilient market that can withstand economic fluctuations. Furthermore, the islandwide retail rents are projected to grow by 4.1% in 2023, particularly along Orchard Road, which is expected to benefit from increased tourist arrivals.

3. Consistent Growth Momentum:

The industrial property market in Singapore has shown consistent growth momentum over the years. As of the end of 2022, all industrial price and rental indices continued to rise, marking the ninth consecutive quarter of increase since the fourth quarter of 2020. This consistent upward trend signifies the strength and resilience of the industrial property market in Singapore.

4. Favorable Government Regulations:

Foreigners face no restrictions when buying commercial property in Singapore, unlike residential properties. This open policy encourages foreign investment in the industrial property sector, contributing to its growth and development.

5. Protection Against Inflation:

Investing in commercial property in Singapore is an excellent way to protect your buying power against inflation. Commercial properties in Singapore tend to appreciate at a rate higher than inflation, making them a good hedge against rising prices.

Investing in industrial property in Singapore offers numerous benefits, including high rental yields, a stable market outlook, consistent growth momentum, favorable government regulations, and protection against inflation. However, like any investment, it comes with its own set of risks, such as market volatility and potential tenant defaults. Therefore, it’s crucial to conduct thorough research and due diligence before making an investment decision. Despite these challenges, the potential rewards make industrial property in Singapore a compelling investment opportunity worth considering.

If you would like to arrange a viewing appointment with us in Singapore, do send us a DM here

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …

All Buying Tips

7 Essential Tips for Finding Your Perfect Retirement Home

Jayson Ang – October 27, 2024 –

TLDR Searching for a forever home should balance heart and practicality. Avoid homes with stairs, high cabinets, big kitchens, and...

All Blog Posts Buying Tips

Buying HDB Resale : How to Minimise COV

Jayson Ang – January 20, 2023 –

TLDR Understanding Cash Over Valuation (COV) is crucial when buying a resale HDB flat in Singapore. COV is the additional...

Mandarin Top 5

Singapore’s Top 5 Property Investment Hotspots for 2024

Jayson Ang – April 4, 2024 –

As one of the world's leading financial centers, Singapore has always been a popular destination for property investment. With a...

All Buying Tips Selling Tips

Should You Purchase a Small Landed Home or a Larger Condo? Insights from Singaporeans

Jayson Ang – August 5, 2024 –

TLDR When deciding between a compact landed house and a spacious condominium, consider key factors like security, parking, maintenance costs,...

Top 5 Questions to Ask : Is Singapore Property Investment for Me?

Mandarin Top 5

HDB Market Outlook 2023

Jayson Ang – January 8, 2023 –

TLDR: Understanding the HDB Market Outlook 2023 The HDB resale market showed resilience in 2022, with significant growth in sales...

Mandarin Top 5

Top 5 : Common Characteristics Of Singapore Condos That Make Them An Attractive Investment Opportunity For Foreign Buyers

Jayson Ang – January 6, 2025 –

Singapore, a thriving hub of business and commerce in Southeast Asia, has become an attractive destination for foreign investors looking...

Mandarin Top 5

5 Tips : How To Negotiate A Good Deal When Buying A Singapore Property

Jayson Ang – July 12, 2024 –

When looking to buy a property in Singapore, it's essential to know how to negotiate a good deal. Here are...

All Buying Tips Selling Tips

When Should You Consider Investing in Singapore Property, and When Should You Avoid It?

Jayson Ang – February 2, 2025 –

TLDR Investing in real estate is a complex decision influenced by personal goals, investment horizon, rental plans, and financial liquidity....

All Blog Posts Buying Tips Opinion Selling Tips

Should You Keep Your Resale HDB Flat When Buying a Private Property? 5 Key Factors to Consider

Jayson Ang – November 3, 2024 –

TLDR In Singapore, owning both an HDB flat and a private property has become complicated due to factors like Additional...

All Buying Tips

Simplified Guide to Buying Landed Property in Singapore

Jayson Ang – January 8, 2024 –

TLDR When considering buying a landed property in Singapore, you have options like terrace homes, semi-detached houses, and bungalows. Understanding...

Mandarin Top 5

Top 5 Best Hidden Boutique Hotels in Singapore

Jayson Ang – October 11, 2024 –

Singapore, a vibrant city-state known for its iconic landmarks and diverse culture, offers a plethora of accommodation options for travelers....

Mandarin Top 5

How To Avoid Top 5 Common Investment Pitfalls When Investing In Singapore Property

Jayson Ang – July 24, 2024 –

When investing in Singapore's property market, it is crucial to be aware of the common pitfalls that can lead to...

Mandarin Top 5

Top 5 : Benefits of Investing in Newer vs. Older Singapore Property Market Condos for International Buyers

Jayson Ang – January 4, 2025 –

Singapore's property market has always been an attractive investment option for international buyers, thanks to its stable economy, strategic location,...