Investing in Strata-Titled Industrial Units: What You Must Know

Introduction Strata-titled industrial units have become increasingly popular among investors seeking affordable entry points and flexible ownership in Singapore's industrial property market. But what exactly are they, and what should you know before committing your capital?

What Are Strata-Titled Industrial Units? Strata-titled units refer to individual factory or warehouse units within a larger development, where each unit is separately owned. This is similar to how condominiums operate. Investors purchase a unit (or multiple units) while the common areas are jointly owned by all unit holders under a Management Corporation Strata Title (MCST).

Key Benefits

• Lower Capital Outlay: Compared to purchasing an entire building or detached factory, strata units are far more affordable, opening the door to more investors.

• Ease of Exit: Selling a single unit is easier and faster than selling a whole building.

• Location Choices: These are often found in well-located areas with good transport connectivity and supporting infrastructure.

  
  

Key Considerations

• Maintenance Fees: All owners contribute to maintenance costs of common areas, which may vary significantly depending on building size and age.

• Restrictions on Use: There may be MCST rules or URA zoning restrictions limiting usage.

• Tenant Profile: These units may appeal more to smaller businesses, which can present higher turnover risk.

  
  

Who Should Invest? Strata-titled industrial units are ideal for individual investors, SMEs, or businesses looking to own their operational space while building long-term asset value.

Conclusion Strata-titled units offer a relatively low-risk gateway into industrial property, but investors must carefully review MCST regulations, zoning laws, and the unit’s physical condition.