What is B2 industrial?
Sengkang Connection is zoned Business 2 (B2) under URA's Master Plan. B2 is Singapore's main zoning for general industrial activity. It allows clean and light industries as well as general industry, warehousing and other industrial activities that may have some impact on their surroundings, subject to approval from agencies such as NEA. Compared with Business 1 (B1), which is limited to cleaner and lighter activities, B2 offers businesses more flexibility in what they can do.
Because Sengkang Connection is built on JTC land, owners and tenants must also follow JTC's requirements on approved uses, ancillary space and subletting. Understanding these rules before you buy will save you time and avoid problems later.
Common business activities suited to Sengkang Connection
The following are examples of industries that commonly operate from B2 strata industrial units. Final approval always depends on the specific activity, the unit and the relevant authorities.
| Sector | Example activities |
|---|---|
| Manufacturing | Precision engineering, metal and wood fabrication, electronics assembly, printing, packaging |
| Logistics | Warehousing, distribution, third-party logistics, cold storage (subject to specs) |
| E-commerce | Fulfilment, inventory storage, packing and dispatch |
| Food | Food manufacturing, central kitchens and food processing, subject to SFA and NEA approvals and unit provisions |
| Building trades | Renovation contractors, M&E, carpentry workshops, building materials storage |
| Automotive and engineering services | Repair and servicing of equipment and machinery, subject to approvals |
| Technology and R&D | Product development, prototyping, testing, data or server rooms tied to industrial operations |
Ancillary uses and the 60:40 principle
Industrial units in Singapore are designed for industrial activity. A portion of the floor area can be used for ancillary uses that support the main activity, such as an office, showroom or meeting room. Under URA and JTC guidelines, the industrial activity must make up the predominant share of the space, commonly expressed as at least 60% for industrial use with up to 40% for ancillary uses. Pure office, retail, residential or other non-industrial uses are not allowed. Check the current ratios and the specific requirements in the sale documents.
Who can buy Sengkang Connection?
Strata industrial property in Singapore can be bought by individuals or companies, both local and foreign. There is no ABSD on industrial property. However:
- Purchases of units on JTC land may be subject to JTC's assessment or conditions, especially for owner-occupation.
- The intended use of the unit must comply with B2 and JTC requirements.
- Individual buyers using bank loans are assessed under the TDSR framework.
- Company buyers will need corporate documents and may be asked for financial statements by banks.
Owner-occupy or invest?
Owner-occupiers
Many buyers of new B2 units are SMEs who want certainty over their premises. Owning lets you customise your fit-out, avoid rental increases at renewal, and build equity. For a business planning to stay in the north-east for the long term, buying at Sengkang Connection can be a strategic move.
Investors
Investors can lease units to businesses carrying out approved activities. Rental demand is shaped by the location, unit size, access and specifications, as well as the supply of competing space nearby. Sengkang Connection's position in a part of Singapore with relatively few new industrial options is a point in its favour. Note that JTC may impose conditions on subletting; read the sale and lease documents carefully.
Understanding the 33-year tenure
The JTC land lease for Sengkang Connection is 33 years. JTC generally releases industrial land on shorter leases to keep costs manageable for businesses and to allow land to be recycled for future needs. A shorter lease usually means a lower purchase price compared with older long-lease industrial property. When planning your purchase, consider:
- How long you intend to use or hold the unit.
- How banks will view the remaining lease when you take a loan, and when a future buyer takes one.
- The cost of owning compared with renting over the same period.
Checklist before you book
- Confirm your business activity is an approved B2 use, and whether any additional licences (NEA, SFA, SCDF) are needed.
- Check that unit specifications (floor loading, power, ceiling height, access) meet your operations.
- Understand JTC requirements on use, subletting and assignment.
- Get an in-principle loan approval.
- Engage a lawyer to review the option to purchase and sale documents.
Have questions about whether your business fits? Contact us with a short description of your activity. You can also read the Sengkang Connection FAQ or the floor plan guide.
Frequently Asked Questions
What does B2 mean?
B2 (Business 2) is a URA zoning for clean industry, light industry, general industry, warehouses and similar uses, including activities that may have some impact on surroundings, subject to approval from relevant authorities.
Can I run an office at Sengkang Connection?
Industrial units can include ancillary office space that supports the main industrial activity, within the limits set by JTC and URA. A pure office use is not allowed in a B2 unit.
Can I rent out my Sengkang Connection unit?
Investors may lease out units to tenants carrying out approved B2 activities, subject to JTC's rules on subletting and approved uses. Check the specific conditions in the sale documents.
Is e-commerce allowed in a B2 unit?
E-commerce businesses with warehousing, packing and fulfilment operations generally fit industrial use. The industrial activity must be the main use of the unit; check with the developer and JTC for your specific case.