B2 Factory for Sale in Singapore: 10 Checks Before You Buy
By SG Property Group · 2026-11-18 · 1594 words
Singapore's factories are close to full. JTC's Q3 2026 statistics put occupancy at 89.1% for single-user factories and 90.3% for multiple-user factories, and multiple-user factory prices were up 5.3% on the year. New supply is limited: about 0.3 million sq m of industrial space is due in Q4 2026, and only 0.2% of that is multiple-user factory space.
That is good news for owners and a reason for buyers to move carefully. Purchases of a B2 factory for sale in Singapore tend to go wrong in predictable ways: the wrong zoning for the activity, a use the authorities won't approve, or a lease too short for the bank. These ten checks are ordered by risk, so the ones that can stop your business from operating come first.
1. Check that the zoning fits your activity
This is the check that matters most. Under URA's guidelines, clean and light industries go in Business 1 (B1) zones, while general and special industries belong in Business 2 (B2). If your operation needs B2 and you buy a B1 unit, no amount of renovation will fix it.
B2 also comes with environmental controls. URA notes that NEA requires a 100m nuisance buffer between a B2 zone and the surrounding area, with buffer distances by industry type set out in NEA's Code of Practice for Pollution Control. If your process involves fumes, noise or hazardous materials, ask NEA for an Industrial Siting Consultation before you sign, not after. Our B1 vs B2 guide explains the two classes in more detail.
2. Confirm that your specific use will be approved
Zoning tells you what the area allows. Approval decides what you can actually do in your unit. For JTC properties, JTC's guidance states that at least 60% of gross floor area must be used for industrial activities, with the remaining 40% available for ancillary offices or showrooms, as set out in its lease handbook. Other uses need written approval from JTC and the relevant authorities.
The practical rule: do not buy a B2 factory planning to run it mostly as an office or showroom. Ask the seller for the unit's approved use, and get written confirmation that your activity fits before you pay a deposit.
3. Check the remaining lease, and what the bank will lend against it
Most industrial land in Singapore is leased by JTC on 30- or 60-year terms. Shorter remaining leases cost less, but they lose value as the lease runs down. Savills' Q2 2026 data shows 30-year leasehold strata industrial prices falling 1.9% on the quarter to S$346 psf, while freehold rose 1.6% to S$890 psf. The lease also affects financing: banks lend partly on remaining tenure, so a short lease can mean a smaller loan, a shorter loan tenure, and fewer buyers who can finance your unit when you sell.
Before you shortlist, read our guides to 30-year vs 60-year vs freehold and the 33-year industrial lease.
4. If the land is JTC's, build JTC consent into your timeline
When an industrial lease on JTC land is assigned to a new owner, JTC assesses the buyer's business plan, economic contribution and infrastructure needs. Its assignment factsheet gives a processing time of up to 2 months from a complete application.
A streamlined route, which takes up to one month, covers sites of up to 1.5 ha with no more than 15 years of lease remaining, used for manufacturing, with enough infrastructure capacity, and outside the assignment prohibition period. Dormitory and self-storage uses, and substantial redevelopment, still go through the full assessment.
Two practical points. Make your offer subject to JTC approval, and do not plan to move in until consent is granted. If the application looks complex, a specialist such as our partner John Ong, JTC industrial property consultant, can prepare the business plan submission.
5. Verify floor loading and ceiling height for the actual unit
Heavy machinery, racking and stacked stock all need floor loading to match. Don't rely on a building-wide brochure figure: ask for the as-built floor loading of the specific unit and floor, since loading can differ between floors in the same building. Do the same for clear ceiling height under beams and sprinklers.
As a reference point, Keystone @ Mandai, a freehold B2 new launch, lists 15 kN/m² floor loading and 5.6m ceilings (6.975m on Level 10).
6. Walk the vehicle route, from the gate to your loading door
A B2 factory is only as useful as the trucks that can reach it. Check whether the building has ramp-up access to your floor, whether 40ft containers can manoeuvre to your loading bay, the height clearance at every point, and how many loading bays are shared with other units. Gate+ at Tukang, Jurong is an example of a multiple-user B2 ramp-up factory with 40ft container access and 265 production units. Visit at the busiest time of day, not on a quiet Saturday.
7. Check the power supply allocated to the unit
Many production lines fail on electricity before they fail on space. Ask the developer or the building's management corporation (MCST) for the power capacity allocated to the unit, in amps and phase, and whether an upgrade is possible within the building's total supply. Get this in writing. Upgrading power after you buy can be slow, costly, or not possible at all.
8. Budget for GST: 9% if the seller is GST-registered
The IRAS guide for property owners states that the sale of all properties other than residential properties is subject to GST. At today's 9% rate, that applies whenever the seller is GST-registered, which developers usually are. On a S$2 million B2 unit, that is S$180,000.
If your business is GST-registered and the factory is used to make taxable supplies, you can generally claim that GST back as input tax. If you are not GST-registered, the 9% is a real cost, so budget for it. Resale units bought from a seller who is not GST-registered carry no GST.
9. Work out stamp duty now, and the duty if you sell early
Buyer's stamp duty on non-residential property runs from 1% to 5% in tiers, under the rates in force since 15 February 2023. On a S$2 million unit, BSD is S$69,600. There is no ABSD on industrial property.
The exit matters too. Industrial property sold within three years attracts seller's stamp duty of 15%, 10% or 5% of the higher of the price or market value. If your plans are uncertain, plan to hold for at least three years.
10. Check demand in the estate, not just the island
Islandwide numbers are healthy. JTC's Q3 2026 rental index rose 0.5% on the quarter and 2.1% on the year, and around 1.2 million sq m of industrial space a year is expected to complete from 2027 to 2030. But your factory's value depends on its estate. Look at how many similar units are for sale or rent nearby, how long they have been on the market, and what the asking rents are. Our industrial listings and building library are a good place to start.
Where B2 factories are for sale now
Frequently Asked Questions
Can foreigners buy a B2 factory in Singapore?
Yes. Industrial property is not covered by the Residential Property Act, so foreign individuals and companies can buy B2 factories without special approval. If the factory sits on JTC land, the buyer's business plan is still assessed under JTC's lease assignment process, and the intended activity must suit B2 zoning. See our guide for foreign buyers.
Is there ABSD on a B2 factory?
No. Additional Buyer's Stamp Duty applies to residential property only. A B2 factory carries buyer's stamp duty at the non-residential rates of 1% to 5% by tier, which comes to S$69,600 on a S$2 million purchase. GST at 9% may also apply if the seller is GST-registered.
How long does JTC approval take when buying an industrial property?
JTC's lease assignment factsheet gives up to two months from a complete application for the standard assessment, which reviews the buyer's business plan, economic contribution and infrastructure needs. Eligible sites of up to 1.5 ha with no more than 15 years remaining can use a streamlined route that takes up to one month.
Can I use part of a B2 factory as an office?
Yes, within limits. JTC's guidance requires at least 60% of gross floor area to be used for industrial activities, with the remaining 40% available for ancillary offices or showrooms. Anything beyond that needs written approval from JTC and the relevant authorities. Running a B2 unit mainly as an office is not permitted.
Conclusion: buy the approvals, not just the space
A B2 factory can be an excellent asset in a market where occupancy is near 90% and little new multiple-user space is coming. But the expensive mistakes happen before the purchase: the wrong zoning, an unapproved use, a short lease or a missed JTC timeline. Run the first four checks before you fall in love with the unit.
Tell us your activity, floor loading, power and access needs, and we will shortlist B2 factories that genuinely fit, with the approval questions answered upfront. Call +65 8803 2404 or WhatsApp +65 9768 7722.
Honest numbers. Real deals.