🏠 Property · Investment & Advanced · Sub-Silo 4 · Tool #10

Commercial & Industrial Property Yield Calculator Singapore 2026
Gross Yield, Net Yield, NPI & Cash-on-Cash — Factory, Office, Shophouse & Retail Strata

Calculate gross yield, net yield, and NPI (Net Property Income) yield for Singapore commercial and industrial property — flatted factories, ramp-up warehouses, strata offices, shophouses, and retail mall units. Unlike residential property, non-residential property tax is a flat 10% of Annual Value (not progressive), there is no ABSD for commercial/industrial, and yield benchmarks are significantly higher (4%–7% gross vs 3%–4.5% for residential condos). This calculator includes PSF (per square foot) rental analysis, non-residential BSD, service charge, vacancy, agent commission, and cash-on-cash return on your invested capital.

✓ Gross, Net & NPI Yield ✓ Non-Residential Tax (10%) ✓ No ABSD for C&I ✓ PSF Rent Analysis ✓ Factory / Office / Shophouse
No ABSDC&I Property
Tax10% Flat (NR)
Industrial Gross4.5%–6%
VacancyHigher than Resi
BSDSame 1%–5%
🏢 C&I Yield Inputs
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sqft

Enter floor area for PSF analysis (price per sqft and rent per sqft). Leave blank if you only need yield metrics.

S$
S$
mo
%
% of price

Non-residential property tax (flat 10% of Annual Value where AV = annual rent) is calculated automatically. No ABSD for commercial/industrial. BSD on purchase is also auto-calculated.

S$
% p.a.
S$
🏢 C&I Yield Result
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Enter your property type, price, floor area, monthly rent, and expenses to see gross yield, net yield, NPI yield, and cash-on-cash return.

Annual Rent Allocation — NOI vs Expenses

Commercial & Industrial Property Investment Singapore 2026 — Why C&I Yields Outperform Residential & Key Tax Differences

Singapore’s commercial and industrial property sector offers significantly higher gross yields than residential condos — flatted factories yield 4.5%–6%, strata offices 3%–4.5%, and retail units 3.5%–5.5%. The main appeal: no Additional Buyer’s Stamp Duty (ABSD) on commercial or industrial purchases, regardless of how many properties you own. This makes C&I property a favoured asset class for investors who have already used up their ABSD-free residential quota. The key cost difference: non-residential property tax is a flat 10% of Annual Value — simpler but impactful at scale.

Commercial vs Industrial vs Residential — Investment Comparison

Property TypeGross YieldNet YieldABSDProp Tax
Flatted Factory (B1)4.5%–6.0%3.5%–5.0%None10% flat
Warehouse (B2)4.0%–5.5%3.0%–4.5%None10% flat
Strata Office3.0%–4.5%2.0%–3.5%None10% flat
Shophouse2.5%–4.0%1.5%–3.0%None10% flat
Private condo (residential)3.5%–4.5%2.0%–3.0%20%–60%NOO 10%–20%

Non-Residential Property Tax 2026

Property CategoryTax RateHow Computed
Non-residential (commercial, industrial)Flat 10% of AVAV = estimated annual rent
Residential (owner-occupied)0%–4% progressiveProgressive on AV
Residential (non-owner-occupied)10%–20% progressiveProgressive on AV

Non-residential property tax is flat at 10% regardless of AV size — simpler than residential but impactful for high-rent commercial properties. AV = IRAS’s estimate of the annual market rent the property could fetch.

How This Commercial & Industrial Yield Calculator Works — NPI, Benchmarks & PSF

Step 1 — Select Property Type and Enter Price / Rent

Select your property type (industrial, warehouse, strata office, shophouse, or strata retail). Enter the purchase price and optional floor area (for PSF analysis). Enter the monthly gross rent. The calculator auto-computes BSD and the non-residential property tax (10% flat on annual rent as AV estimate).

Step 2 — Enter Running Expenses

Enter monthly service charge/MCST fees, agent commission months, vacancy rate (use 8%–15% for commercial — higher than residential), and repair/capex budget. All costs are deducted to arrive at Net Operating Income (NOI).

Step 3 — See Gross, Net, and NPI Yield

The three yield metrics: Gross yield (annual rent ÷ price); Net yield (NOI ÷ price); NPI yield (NOI ÷ total acquisition cost including BSD and legal — the metric used by Singapore REITs and institutional investors). Each is benchmarked against typical ranges for your property type.

3 Real Singapore C&I Yield Examples — Flatted Factory, Strata Office & Heritage Shophouse

S$750K Flatted Factory, S$5,000/mo

Gross yield8.0%
Prop tax (10% of S$60K AV)-S$6,000/yr
Maint + vacancy + agent-S$9,600/yr
NOIS$44,400/yr
Net yield5.92%
BenchmarkAbove range

S$1.2M Strata Office, S$4,500/mo

Gross yield4.5%
Prop tax (10% of S$54K AV)-S$5,400/yr
Maint (S$600/mo) + vacancy-S$9,960/yr
NOIS$38,640/yr
Net yield3.22%
NPI yield (incl. BSD)3.07%

S$3.5M Shophouse, S$9,000/mo

Gross yield3.09%
Prop tax (10% of S$108K)-S$10,800/yr
BSD on S$3.5MS$139,600
NOIS$79,200/yr
Net yield2.26%
Shophouse premium factorCapital appreciation

3 Expert C&I Tips — JTC Restrictions, PSF Benchmarks & REIT vs Direct

1

Check JTC Restrictions Before Buying Industrial Property

Singapore’s industrial land is primarily managed by JTC Corporation (Jurong Town Corporation). JTC industrial properties (B1/B2 zoning) have strict usage restrictions: tenants must use the space for approved industrial activities. Renting to non-industrial users (offices, retail, F&B) is not permitted and carries penalties. Before buying, verify: (1) is the property under JTC or private ownership? JTC-owned land has a head lease (30–60 years) that limits the effective tenure; (2) what is the permitted use (B1 for clean industrial; B2 for heavier industry including logistics); (3) can 40% of floor area be used for ancillary office (common for B1, restricted for B2). Ignoring JTC restrictions can make your property nearly impossible to lease legitimately.

2

Use PSF Benchmarks — Not Total Rent — to Evaluate Value

Different sizes and locations make direct rent comparison meaningless — always compare on a per-square-foot basis. Singapore C&I rental benchmarks (monthly, psf): B1 flatted factory (Ubi, Macpherson): S$2.50–S$4.00 psf; ramp-up logistics warehouse (Tuas, Jurong): S$1.80–S$3.00 psf; strata office (CBD): S$8–S$15 psf; strata office (Paya Lebar, Orchard fringe): S$5–S$9 psf; shophouse ground floor (Chinatown, Tanjong Pagar): S$12–S$25 psf. If your target property’s rent PSF is significantly above market (tenant paying above-market rent), factor in downside risk when the lease expires — the next tenant may pay much less. The entry price PSF is equally important — use both metrics together.

3

S-REIT Industrial vs Direct Investment — The 5% Yield Question

Before buying direct industrial property, compare against industrial S-REITs (ESR-LOGOS, Mapletree Industrial, Sabana REIT): distribution yields of 5%–8%, fully managed, no BSD, no JTC compliance, no vacancy risk, fully liquid. Direct industrial at S$1.2M might yield 4% net after BSD (S$26,600), annual management effort, and JTC compliance. The same S$1.2M in ESR-LOGOS REIT at 6% yield = S$72,000 per year with zero management. Direct investment wins if: (1) you can buy below market value (through negotiation or distressed sale); (2) your PSF entry price is competitive enough that appreciation compensates; (3) you have specific tenants who pay premium rents. Otherwise, the REIT dividend yield often beats direct industrial investment net of all costs.

16 FAQs — Singapore Commercial & Industrial Property 2026, Yield, BSD, ABSD & JTC

Is ABSD payable on commercial or industrial property in Singapore?+
No. ABSD (Additional Buyer’s Stamp Duty) applies only to residential property. Commercial property (offices, retail, F&B), industrial property (factories, warehouses), and mixed-use properties with commercial ground floor are all exempt from ABSD. This makes commercial and industrial property especially attractive for investors who have already used their ABSD-free residential quota. You can own as many commercial/industrial properties as you like with no ABSD. Only BSD (at the same progressive rates as residential: 1%–5%) applies to the purchase.
How is non-residential property tax calculated in 2026?+
Non-residential property tax is a flat 10% of Annual Value (AV) — no progressive bands unlike residential. AV = IRAS’s estimate of annual market rental value (approximately equal to actual annual rent for a market-rate tenancy). Example: industrial unit renting at S$5,000/month (AV ~S$60,000). Property tax = 10% × S$60,000 = S$6,000/year. This is the same rate for all non-residential properties regardless of AV size — unlike the progressive residential NOO rates (10%–20%). The 10% flat rate is relatively straightforward but becomes a significant cost for high-rent commercial properties (a S$20,000/month office unit pays S$24,000/year in property tax).
What is the difference between B1 and B2 industrial zoning?+
B1 (Business 1): light industrial use only. Allows clean, light manufacturing, high-tech industries, printing, R&D, food processing (enclosed, no smell/noise). Up to 40% of floor area can be used for ancillary office/showroom. Cannot be used for heavy machinery, pollution-causing industries. Most flatted factories (e.g., in Ubi, Macpherson, Tai Seng) are B1. B2 (Business 2): heavier industrial use. Allows all B1 activities plus heavier manufacturing, logistics, recycling, metalworking. Typically lower PSF rents than B1 but higher vacancy in non-logistics sectors. Located in areas like Tuas, Jurong Industrial Estate, Pioneer. JTC and URA enforce zoning strictly — using B2 space for office activities invites enforcement.
What is NPI yield and why do investors use it?+
NPI yield (Net Property Income yield) = NOI ÷ total acquisition cost (including BSD, legal fees, and due diligence costs). It is the metric used by Singapore REITs and institutional property investors because it shows the true return on total invested capital — not just the headline price. Example: buy at S$1.2M, BSD S$26,600, legal S$3,000 — total cost S$1,229,600. NOI S$38,000. NPI yield = 3.09% vs net yield on price alone = 3.17%. The difference seems small but is conceptually important for comparing acquisitions: a property with high BSD (large price) has a lower NPI yield than headline suggests. This calculator shows both.
Can foreigners buy industrial or commercial property in Singapore?+
Yes — foreigners can buy most commercial and industrial property in Singapore without restrictions (unlike residential property, where foreigners cannot buy landed property). Key exceptions: (1) JTC-owned industrial land (flatted factories built by JTC) — only Singapore Citizens, PRs, and Singapore-registered companies can purchase (foreigners excluded from JTC-owned industrial units); (2) certain conservation shophouses may have restrictions. For private industrial or commercial strata units (not JTC-owned), foreigners can purchase freely with the same BSD as citizens. No ABSD applies regardless of citizenship for commercial/industrial.
What is a shophouse and why are they such a premium investment?+
Shophouses are heritage conservation buildings — typically 2-3 storey buildings with commercial ground floor and residential upper floors (or pure commercial across all floors). Located in conservation districts: Chinatown, Tanjong Pagar, Kampong Glam, Little India, Joo Chiat, Everton Park. They are designated conservation buildings by URA and cannot be demolished or substantially altered. Their investment appeal: (1) severely limited supply (no new shophouses can be built); (2) dual-use — ground floor commercial (F&B, retail) + upper floor office or residential; (3) strong capital appreciation historically. Yields are typically lower (2.5%–4%) than industrial due to high prices, but capital appreciation has been exceptional (some have doubled in 10 years).
What vacancy rate should I use for commercial/industrial?+
Commercial and industrial vacancy rates are generally higher and more volatile than residential: industrial (B1 flatted factory): 8%–15% vacancy; strata office: 10%–20% vacancy (office market has seen high oversupply); shophouse: 5%–10% (low supply, consistent demand); strata retail: 10%–25% (retail disruption from e-commerce). Singapore’s overall commercial vacancy was approximately 10%–12% in 2025. Always use a higher vacancy assumption than residential (minimum 8%) and stress-test at 15%–20% to see the downside scenario on your net yield.
What are the LTV limits for commercial/industrial property loans?+
Commercial and industrial property loans in Singapore: LTV typically 70%–75% of purchase price or valuation (whichever is lower) — slightly lower than residential (75%–80%). MAS rules on residential LTV and TDSR apply to commercial loans too, but the Mortgage Servicing Ratio (MSR) does not apply (MSR is only for HDB/EC). Rates for commercial/industrial loans: typically SORA + 1.5%–2.5%, slightly higher than home loans due to higher risk profile. Loan tenures: up to 25–30 years (shorter than residential for some property types). Banks assess commercial loans more conservatively — they may require the property to be tenanted (or have a strong pre-commitment) before approving full LTV.
Are commercial/industrial rental proceeds taxable?+
Yes — commercial and industrial rental income is taxable in Singapore. Net rental income (rent minus allowable deductions) is taxed at progressive personal income tax rates (0%–24% for individuals; 17% for companies). Allowable deductions: mortgage interest, property tax, maintenance/service charges, agent fees, insurance, repairs. Depreciation/capital allowances on fittings and fixtures may also be claimable. Unlike residential mortgage interest deduction (which is allowed for rental purposes), commercial/industrial mortgage interest is fully deductible. Keeping comprehensive expense records is essential for tax efficiency.
What is the minimum holding period to avoid SSD for commercial property?+
SSD does not apply to commercial or industrial property. SSD (Seller’s Stamp Duty) only applies to residential property (sold within 3 years of purchase). You can buy and sell a commercial or industrial property within 1 month of purchase with no SSD whatsoever. This is a significant advantage over residential property investment. The only holding consideration for commercial/industrial is capital gains (no CGT in Singapore) and stamp duty efficiency (BSD is a sunk cost, so short holds are rarely wise economically). There is no government-imposed minimum holding period for C&I property.
How does GST affect commercial property rental income?+
If you are a GST-registered entity renting commercial or industrial property, you must charge GST (9% as of 2024) on the rent. The tenant pays the rent + 9% GST. You remit the GST to IRAS. If your taxable supplies exceed S$1 million per year (the GST registration threshold), you are required to register. If below S$1M, registration is voluntary but may be advantageous (claim input GST on expenses). Residential rental is exempt from GST — another key difference between commercial and residential property. If you purchase a commercial property as a GST-registered entity, you may be able to claim input GST on the purchase (ask your accountant).
What is the BSD on a S$1M industrial unit?+
BSD on a S$1,000,000 non-residential property: 1% × S$180,000 = S$1,800; 2% × S$180,000 = S$3,600; 3% × S$640,000 = S$19,200. Total BSD = S$24,600. The BSD rates are identical for residential and non-residential property — the critical difference is the absence of ABSD for commercial/industrial. A Singapore Citizen buying a S$1M second property pays BSD S$24,600 + ABSD 20% S$200,000 = S$224,600 in stamp duties vs S$24,600 for a commercial property of the same price. This S$200,000 difference is why investors pivot to commercial after using their ABSD-free residential allocation.
Can I convert a commercial unit to residential use?+
No — you cannot convert commercial or industrial strata units to residential use without URA approval (change of use), which is rarely granted for commercial-zoned land. Shophouses with mixed zoning (commercial ground floor + residential upper floor) already have a defined split — the upper floor can be rented residentially, but the ground floor must remain commercial. URA strictly enforces zoning — using a commercial unit as a residential home is a zoning violation. Conversely, converting a residential property to commercial use also requires URA approval. The zoning is set at the master plan level and is not easily changed at the individual unit level.
What are service charges for strata commercial/industrial?+
Service charges (MCST management contributions) for strata commercial/industrial properties: flatted factory: S$100–S$300/month (low amenities); business park / high-spec industrial: S$300–S$600/month; strata office (Grade A): S$500–S$1,500/month; shophouse: S$100–S$300/month (minimal common areas); retail mall unit: S$500–S$2,000/month (malls have extensive common infrastructure). Retail mall units also typically pay a Marketing Levy (contribution to mall’s promotion fund) and sometimes a percentage of turnover. Always verify the actual MCST fees and any special levies before purchasing — they can significantly impact net yield.
What is a freehold vs 99-year leasehold for commercial property?+
Most Singapore commercial and industrial property is 99-year leasehold (or 30–60 year for JTC industrial). Freehold commercial property is relatively rare and commands a premium. Key considerations: (1) LTV risk: banks reduce loan quantum for commercial properties with less than 30–40 years remaining lease — making them hard to finance; (2) AV decay: as lease runs down, capital value declines; (3) JTC industrial head leases: JTC leases land to developers for 30–60 years — strata factory buyers own the strata title for the remaining JTC head lease period only. Always check the remaining lease before purchasing industrial property — an industrial unit with 20 years remaining is nearly impossible to finance and resell.
How does Singapore’s industrial property market compare with JTC price trends?+
JTC’s quarterly Property Market Statistics track industrial property prices and rentals. Key trends: multiple-user factory (MUF) prices have appreciated ~3%–5% annually over 2020–2025, driven by e-commerce and logistics demand. Warehouse rental was boosted by supply chain shifts post-COVID but has plateaued in 2024–2025 as new supply came online. Business park (science park, tech hub space) has seen mixed demand as work-from-home normalised. Industrial capital values are generally lower than equivalent-sized residential (reflecting leasehold and usage restrictions), but yields are higher. Always check JTC’s latest quarterly report (available at jTc.gov.sg) before investing — the data is granular by region and property type.
Legal Disclaimer & Editorial Transparency. No ABSD on commercial or industrial property. BSD at progressive 1%–5% applies to all non-residential property. Non-residential property tax: flat 10% of Annual Value (AV = IRAS estimate of annual rental value). AV estimated as gross annual rent — actual AV from IRAS may differ. JTC-owned industrial: foreign ownership not permitted; check head lease remaining tenure. B1/B2 zoning restrictions enforced by URA/JTC. SSD does not apply to commercial/industrial property. GST registration (S$1M threshold) may require charging GST on commercial rent. Yield benchmarks based on market data 2024–2025. All figures indicative. Not financial or legal advice. Operated by MAFHH INTERNATIONAL LTD.