Singapore industrial rental yield by district — 2026 benchmark
Industrial rental yield in Singapore depends heavily on district, zoning, building age, and tenant covenant. This guide gives buyers a clean district-by-district benchmark for both B1 and B2 industrial yield expectations in 2026.
By Alvin Tan, CEA R072324C, ERA Realty Network L3002382K. Yield benchmarks compiled from active transactions, JTC tender data, and on-market lease comparables.
2026 industrial yield benchmark — by district
| District | Zoning | Gross yield (typical) | Notes |
|---|---|---|---|
| Macpherson / Ubi / Tai Seng | B1 | 5.5-6.5% | Urban B1 belt — best resale liquidity, premium psf |
| Bedok North / Kallang Way | B1 | 5.8-6.8% | Steadier yield, smaller buyer pool |
| Bukit Merah / Alexandra (light industrial) | B1 | 5.5-6.2% | Premium for proximity to CBD spillover tenants |
| Jurong East / West (within JID) | B1 / B2 mix | 6.0-7.5% | JID build-out tailwinds |
| Tuas (Mega Port catchment) | B2 | 6.5-8.5% | 10-year capital story, higher current yield to compensate for distance |
| Sungei Kadut / Senoko | B2 | 6.8-9.0% | Highest headline yield, smaller tenant pool, longer vacancies |
| Loyang / Changi North | B2 | 6.0-7.5% | Logistics-heavy, airport catchment |
| Tampines (Industrial) | B2 | 6.0-7.0% | Mature B2 estate, established tenant base |
| Woodlands (Industrial) | B2 | 6.5-8.0% | Upcoming logistics catchment, RTS Link tailwind |
Yields are gross. Net yield typically 70-80% of gross after MCST, property tax, insurance, vacancy buffer.
Why yields differ by district
Three forces drive the spread:
- Tenant pool depth. Macpherson has dozens of biotech / IT / training tenants competing for clean industrial space — drives up rents but compresses yield (because purchase prices have risen faster than rents).
- Master plan tailwinds. Tuas Mega Port and JID build-out push purchase prices upward in those zones, but rental growth lags the price growth — yield compresses near the end of the build-out cycle.
- Risk premium. Sungei Kadut / Senoko offer higher yield as compensation for thinner tenant pool, longer vacancies, and uncertainty around future master-plan reposi​tioning.
FAQ — industrial yield benchmarks
What is the average gross yield for industrial property in Singapore 2026?
Cross-district average: 6.2-7.0% gross. B1 in urban belt averages around 6%, B2 in industrial parks averages 7-7.5%, with Tuas / Sungei Kadut at the high end (7.5-9%).
How is industrial yield calculated?
Gross yield = (annual rental income / purchase price) × 100. Net yield deducts MCST, property tax, insurance, vacancy buffer (typically 5-10% of gross income).
Why is industrial yield higher than residential?
Three reasons: smaller buyer pool (less competition compresses purchase prices), no ABSD penalty (residential investors carry ABSD overhead), and shorter typical lease terms in industrial (more frequent rental resets to market).
Is the higher yield worth the lower liquidity?
Depends on horizon and portfolio role. For a buyer with 7-10+ year horizon adding industrial to a residential-heavy portfolio, the yield premium plus ABSD-exemption stacks materially in favour. For shorter-horizon flippers, residential’s broader resale pool wins.
Which district has the most reliable industrial yield in 2026?
Macpherson and Ubi B1 strata have the most reliable yield (5.5-6.5%) due to deep urban tenant pool. Tuas B2 has the most upside but higher volatility.
Related guides
WhatsApp Alvin Tan at +65 8488 8648 for live yield comparables on specific buildings or districts.
Last updated: 4 May 2026. ERA Realty Network L3002382K.
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