PROPERTY

Why Jurong Dominates Industrial Real Estate

Jurong leads with 7.5% growth. Avoid ABSD and secure high-spec GATE+ units in Singapore’s top-performing industrial frontier.

Landmarks JLD, JID, and Tuas Port

For decades, the western part of Singapore was viewed through a purely utilitarian lens — a place of heavy machinery, sprawling factories, and the distant hum of the shipyard. However, as we move into 2026, the narrative has shifted dramatically. Jurong is no longer just an industrial estate; it is the heartbeat of Singapore’s “Second CBD” and the epicentre of a massive urban transformation. For the modern property collector, Jurong (District 22) has emerged as the most strategic location for industrial investment, offering a unique blend of government-backed infrastructure, a high-density corporate ecosystem, and unparalleled rental resilience.

Whether you are looking to hedge against residential cooling measures or seeking a high-yield asset to scale your portfolio, here is why Jurong stands as the ideal location for industrial investment.

1. The Power of the Ecosystem: JLD and JID

The primary catalyst for Jurong’s dominance is the Jurong Lake District (JLD) masterplan. JLD is envisioned as a mixed-use business district that will eventually provide 100,000 new jobs and 20,000 new homes. This is not merely a local project; it is a national priority to decentralize the CBD and create a sustainable, high-tech environment where people can live, work, and play.

Complementing JLD is the Jurong Innovation District (JID), an advanced manufacturing hub that acts as a magnet for research, development, and high-tech production. This dynamic ecosystem allows companies to tap into a massive talent pool from nearby tertiary institutions like Nanyang Technological University (NTU) and the National University of Singapore (NUS). For an investor, this means a constant, high-quality tenant base ranging from tech startups to global academic partners.

2. Proximity to Global Giants and Infrastructure

Location is the first rule of real estate, and Jurong’s geography is its greatest competitive advantage. Industrial developments in this region, such as Gate+, are strategically situated near a cluster of over 3,000 multinational companies (MNCs). These aren’t just any tenants; they are industry leaders like Rolls Royce, Leica, Caterpillar, and Greenphyto.

Being a landlord in a district populated by global giants provides a “halo effect” for your property value. Furthermore, Jurong is the gateway to the Tuas Port, which is the world’s largest transshipment hub. With direct access to major expressways like the Ayer Rajah Expressway (AYE) and upcoming transport nodes like the Tukang and Jurong Hill MRT stations (estimated completion 2029), the logistics of moving goods and people in Jurong is becoming increasingly seamless.

3. Data-Driven Growth: District 22 Performance

District 22 ranked as the top performing district in terms of property volume and growth

While much of the property market has faced headwinds due to global economic shifts, Jurong’s industrial sector has remained remarkably robust. In the first half of 2026, District 22 ranked as the top performing district in terms of property volume and growth, recording a 7.5% increase in average PSF. This stands in stark contrast to other industrial regions like D25 or D5, which saw significant contractions during the same period.

This growth is supported by a broader trend: the Singapore industrial rental market has recorded 20 consecutive quarters of rental growth. As of 2025, there are over 371,000 SMEs in Singapore, a number that is growing at an average rate of 3% year-on-year. These businesses need space, and Jurong remains their preferred destination.

4. The 99% Occupancy Phenomenon

Perhaps the most compelling argument for Jurong is the sheer lack of available space. Investors often worry about vacancy risks, but in Jurong, the data suggests the opposite. A survey of existing B2 industrial buildings in the area reveals staggering occupancy rates:

• West Connect Building: 99%
• I Space: 99%
• Pioneer Junction: 96%
• Ace @ Buroh: 94%

In an environment where occupancy is hovering near 100%, landlords possess significant bargaining power. The high demand for multi-user factory space — which makes up only 36% of new supply compared to 61% for single-user factories — means that strata-titled units are becoming increasingly rare and valuable.

5. Financial Efficiency and the “Property Collector” Concept

Investing in Jurong industrial property allows investors to bypass the most painful aspects of residential investment: Additional Buyer’s Stamp Duty (ABSD). Industrial properties attract zero ABSD, allowing you to deploy 100% of your capital into the asset rather than taxes.

Furthermore, industrial property offers superior Loan-to-Value (LTV) limits. While residential investors are often capped at 75% (or lower for second properties), industrial investors can secure up to 80% for investment and 90% for own-use. When you combine this with a flat 10% property tax (compared to up to 36% for residential) and the ability to claim back GST if purchasing through a company, the industrial segment becomes the most affordable and cash-flow-efficient entry point in the Singapore market.

6. The B2 Advantage: Versatility and Future-Proofing

Jurong is a stronghold for B2 (General Industrial) zoning, which offers far greater flexibility than B1 (Light Industrial) sites. B2 zoning allows for a diverse range of trades, including heavy manufacturing, car workshops, dishwashing services, and some other specialized niches.

Crucially, a B2 factory can host B1 trades, but a B1 factory cannot host B2 trades. This inherent versatility ensures that your property can adapt to changing market demands. If one industry faces a downturn, your unit can easily be repositioned for a different trade, significantly lowering your long-term vacancy risk.

7. Understanding the “New Normal” of Leases

A common hesitation for new industrial investors is the 30-year or 33-year leasehold tenure. However, it is vital to understand that this is the “New Normal” established by JTC to ensure land remains available for future industrial needs.

Many resale properties currently on the market that boast a 60-year lease from the past are now left with only 10 to 15 years remaining, which can lead to rapid price depreciation due to “lease decay”. In contrast, a brand-new 33-year lease — like the one offered at Gate+ — is considered relatively long and provides the stability needed for a full investment cycle without the hidden repair costs and structural issues often found in older buildings.

8. Gate+: A Benchmark for Jurong Industrial Space

To maximize the advantages of a Jurong location, an investment must have high technical specifications that meet modern industrial needs. Gate+, a 10-storey multi-user ramp-up development, exemplifies the type of asset that thrives in this district.

• Heavy-Duty Specs: With a floor loading of 10 kN/m² and ceiling heights of up to 7 meters, it is designed for maximum operational efficiency.
• Logistics-Friendly: The building features a ramp-up design allowing 20-footer vehicle access to units and dedicated loading bays for 40-footer articulated vehicles.
• Sustainability Leadership: As a Green Mark 2021 Platinum Super Low Energy (SLE) building, it offers 60% greater energy savings than standard builds, a feature that is increasingly attractive to MNC tenants with strict ESG (Environmental, Social, and Governance) requirements.

Conclusion: Why Wait?

The window of opportunity in Jurong is narrowing as the district matures. With land bid prices for new industrial plots already showing upward pressure — such as the recent 16% increase in land bid prices for Tukang Plot B compared to Plot A — entry prices are likely to climb.

For the “Property Collector,” the goal is simple: Save, Buy, Keep, and Collect Rent. By securing a B2 asset in Jurong today, you are not just buying a factory; you are buying a piece of Singapore’s future economic core.

If you are tired of helping your landlord pay for their asset through rent, or if you are looking for a high-yield (4–6%) alternative to the cooled residential market, the numbers are clear. Jurong isn’t just an ideal location; it is the only location for those who want to lead the next wave of Singapore real estate growth.

Are you ready to stop renting and start collecting? Explore the unique advantages of GATE+ and discover why Jurong is the gateway to your investment success..

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