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

Posted by Jayson Ang on February 15, 2025
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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:

  1. Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
  2. 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.

 

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