How Property Zoning Affects Industrial Investments

When it comes to industrial property, location matters—but zoning is what truly determines how you can use your property. Understanding zoning helps you avoid costly surprises and identify the best long-term investment opportunities.

What Is Zoning?

Zoning refers to how the Urban Redevelopment Authority (URA) classifies land use in Singapore. For industrial properties, the two main zones are B1 (light industrial) and B2 (heavy industrial).

• B1 zones are meant for cleaner activities—like electronics assembly, logistics, and food preparation.

• B2 zones allow for heavier industries such as manufacturing, auto repair, or engineering works.

Why It Matters to Investors

A property’s zoning affects everything—from the type of tenants you can attract, to resale value, to loan eligibility. For example, a B1 property often sees higher tenant demand due to its proximity to offices and accessibility, while a B2 unit offers larger spaces and lower price per square foot—but with usage restrictions.

Zoning Can Change

URA periodically reviews its Master Plan, which may rezone areas for redevelopment. A savvy investor keeps an eye on these updates—an industrial area rezoned for mixed-use can offer significant capital upside.

Whether you’re buying your first B1 unit or diversifying into B2 spaces, understanding zoning keeps your investment future-proof and compliant.