# Why freehold food factories are strategic and stable investment assets

- **Source:** EdgeProp Singapore
- **Published:** 2026-08-14T02:00:00.000Z
- **Author:** Christine Sun
- **Original:** https://www.edgeprop.sg/property-news/why-freehold-food-factories-are-strategic-and-stable-investment-assets
- **Topics:** Commercial & Industrial, Transactions & Deals, Investment & Capital Markets

## Featured rationale

The substantial premium signals investor preference for perpetual tenure and resilient tenancy, which may support values and rents for scarce freehold food-production assets.

## AI summary

Freehold food factories transacted around $1,500 psf in 2Q2026, versus approximately $600 psf for leasehold counterparts, amid limited supply and expanding occupier demand.

## Original article

Freehold food factories are extremely rare in the market. This niche market segment offers an untapped and attractive yield investment opportunity that most investors have overlooked.

Unlike standard 30-year or 60-year leasehold industrial properties, freehold food factories give long-term investors perpetual value. As a freehold property, this asset class is immune to lease decay and can be a highly defensive asset in periods of volatility. Owners can pass down the asset across generations, preserving their wealth and capital investment.

The asset’s resilience lies in its limited supply. Authorities seldom issue new land parcels because sites zoned for food production are tightly regulated. Food factories are subjected to strict environmental guidelines, and their specialised infrastructure is costly and difficult to construct, making them highly scarce and sought after.

Read also: Chin Bee Food Zone terraced factory in Jurong West for sale at $4.25 mil

Besides rarity, Singapore’s strong fundamentals in food manufacturing and delivery services continue to prop up demand for food factories. Demand increased after national food security goals scaled up centralised food production needs.

Evolving food industry

Singapore’s F&B industry has evolved over the past decade due to changing consumer behaviours and new government initiatives.

Demand for food delivery services and ready-to-eat meals rose exponentially after the pandemic. This caused the number of end-user food establishments and central kitchen operators to spike in tandem. In 2025, both non-retail food establishments and food shops expanded to their highest levels since data was available from 1993.

According to the Department of Statistics Singapore, the number of non-retail food establishments jumped by 64.8% from 1,618 units in 2015 to 2,667 units in 2025 — above the past 16-year average of 1,862 units.

Food shops similarly expanded by 47.7%, from 16,490 units to 24,359 units over the same period — much higher than the past 16-year average of 18,634 units.

End-user food establishments and central kitchen operators have been the primary occupiers of food factory spaces, serving the local F&B market. Their business model, which focuses on centralised food production, improves efficiency, as occupiers have better control of food quality and more seamless distribution islandwide. There may be lower tenant turnover, which can provide longer-term security and higher investment returns.

Read also: How school proximity drives property decisions for families

Government initiatives propel growth

The government has recently updated its food strategy by replacing the 30 by 30 food sustainability goal with new targets for fibre and protein. It aims to supply 20% of local fibre consumption and 30% of local protein consumption by 2035.

With these changes, we have already seen new start-ups producing more laboratory-grown meat and plant-based protein products. Many are setting up production lines and factories here.

The refreshed food resilience strategy could see more industrial spaces catered for domestic F&B outlets, central kitchens and food technology operations.

Growing preference for freehold food factories

The depreciation of existing leasehold food factories is making a strong case for owners considering freehold options. Many leasehold food factories are already midway through or approaching the end of their tenures. Investors and occupiers must either absorb the high extension costs or face disruptive relocations.

In Singapore, most industrial land sites are leasehold, and they are usually sold through the Industrial Government Land Sales Programme. Freehold land sites are less common as they can be acquired only through tedious private negotiations or collective sales.

While it may be easier to acquire leasehold sites, food factories with a leasehold tenure face lease decay given their relatively shorter lease, which typically lasts for either 30 or 60 years, resulting in a low terminal value towards the end of their lease period.

Read also: Freehold strata-industrial project Generations @ Tannery fully sold within two days

Freehold food factories, on the other hand, offer the ultimate long-term value proposition as they provide long-term operational growth and security. Occupiers do not need to fear losing their tenanted space or incurring major reallocation costs when the lease expires.

This is important for capital-intensive central kitchen operators where fit-out sunk costs tend to be high. Investors can also be assured of resilient tenant demand and a steady stream of recurrent income.

Price premium and stable rents

Freehold food factories have consistently been sold at a much higher price premium when compared to their leasehold counterparts. This reflects investors’ willingness to pay for assets with perpetual tenure.

Data from the JTC Corp shows that median prices of leasehold food factories transacted at around the $600 psf price range in 2Q2026, whereas freehold food factories were sold at around $1,500 psf. Some of the recent freehold food factory transactions were recorded at Citrine Foodland @ 33 Kim Chuan and CT FoodNex.

As for the rental market, the general multiple-user factory segment has been resilient. JTC data shows an upward trend in median rents of multiple-use factories from 1Q2018 to 2Q2026 across planning areas where food factories are located.

Of these locations, Tuas registered the strongest rental growth of 83.3%, followed by Sembawang at 79.2% and Hougang at 53.3%. The positive rental trends were observed for several freehold food factories in Sungei Kadut, where average rents rose by 52.2%.

Comparatively, Clementi saw a smaller gain of 14.3%, while Toa Payoh had a 10.4% increase.

Of the planning areas, Toa Payoh had the highest leasing demand of 251 leases, followed by Clementi (226 leases), Sembawang (216 leases) and Sungei Kadut (123 leases).

Mandai and Tuas are choice locations

Many operators have been occupying food factory spaces in Mandai and Woodlands, where operational spaces are larger and costs are lower than for retail spaces.

Food factories in these locations are set to benefit further from the Sungei Kadut Eco-District master plan transformation. An agri-food ecosystem that will complement the neighbouring Senoko food zone and Lim Chu Kang farms is being set up to support food demand and supply needs.

Food manufacturers and related technology firms will be drawn to the area, creating a larger pool of tenants seeking food factories. Investors will enjoy greater rental demand in the long run and higher investment value if they were to buy a new food factory there.

Food Vision is one of the newest completions

There are few freehold food factories in the market. Food Vision @ Mandai is one of the newest freehold food factories to be completed. Jointly developed by Sim Lian Development and EL Development, the 10-storey freehold ramp-up B2 food factory features 114 production units and one staff canteen.

The newly completed project will offer new spaces for food production and central kitchen operations. Its location within the established Mandai food manufacturing cluster allows businesses to benefit from close proximity to suppliers and distributors, enhancing operational efficiency and logistics connectivity across Singapore.

Long-lasting value

In a market where asset values depreciate over time, freehold food factories will continue to offer a compelling proposition to investors. The value preservation helps position investors and F&B players for attractive long-term returns while occupiers benefit from the security of perpetual ownership.

As Singapore continues to anchor its position as a regional food innovation and R&D hub, demand for premium and highly regulated industrial spaces is expected to grow further over the next few decades.

## Chinese translation

> Translation model: grok_cli

### 为何永久地契食品厂房是具战略意义且稳健的投资资产

永久地契食品厂房兼具供应稀缺、永久地权与稳健租户需求，有助于支撑长期价值。

永久地契食品厂房在市场上极为罕见。这一利基细分市场提供了多数投资者尚未关注、尚未充分挖掘且具吸引力的收益率投资机会。

与标准的30年或60年租赁地契工业物业不同，永久地契食品厂房为长期投资者提供永续价值。作为永久地契物业，这类资产不受租约衰减影响，在波动时期可以是高度防御性资产。业主可将资产代代相传，保全财富与资本投资。

该资产的韧性源于供应有限。当局很少发放新地段，因为食品生产区划地块受到严格监管。食品厂房须遵守严格环境指引，其专用基础设施造价高昂、建造困难，因此极为稀缺、备受追捧。

另读：裕廊西振美食品区排屋式厂房以新币425万元待售

除稀缺性外，新加坡食品制造与配送服务的坚实基本面持续支撑食品厂房需求。在国家粮食安全目标扩大集中式食品生产需求后，需求进一步上升。

餐饮业演变

过去十年，受消费行为变化和新政府举措推动，新加坡餐饮业已发生演变。

疫情后，外卖服务与即食餐需求呈指数级上升。这带动终端餐饮场所和中央厨房运营商数量同步激增。2025年，非零售餐饮场所和食店数量均升至自1993年有数据以来的最高水平。

根据新加坡统计局，非零售餐饮场所数量从2015年的1618间跃升64.8%，至2025年的2667间——高于过去16年平均的1862间。

同期，食店同样扩张47.7%，从16490间增至24359间——远高于过去16年平均的18634间。

终端餐饮场所和中央厨房运营商一直是食品厂房空间的主要租户，服务本地餐饮市场。其以集中式食品生产为核心的商业模式提升了效率，租户能更好控制食品质量，并在全岛更顺畅配送。租户周转可能较低，从而提供更长期的稳定性和更高投资回报。

另读：学校邻近如何影响家庭的置业决策

政府举措推动增长

政府近期更新粮食战略，以纤维和蛋白质新目标取代“30 by 30”粮食可持续目标。其目标是到2035年供应本地纤维消费的20%和本地蛋白质消费的30%。

随着这些变化，我们已看到新创企业生产更多实验室培育肉和植物基蛋白质产品。许多企业正在本地设立产线和厂房。

更新后的粮食韧性战略，可能带动更多工业空间面向本地餐饮门店、中央厨房和食品科技运营。

对永久地契食品厂房的偏好上升

现有租赁地契食品厂房的折旧，使业主更有理由考虑永久地契选项。许多租赁地契食品厂房已进入租期中段或接近期满。投资者和租户要么承担高昂延期费用，要么面对破坏性搬迁。

在新加坡，多数工业用地为租赁地契，通常通过工业政府售地计划出售。永久地契地块较为少见，只能通过繁琐的私人协商或集体出售取得。

虽然租赁地契地块较易取得，但租赁地契食品厂房因租期相对较短——通常为30年或60年——面临租约衰减，租期临近结束时终值偏低。

另读：永久地契分层工业项目Generations @ Tannery两日内售罄

相比之下，永久地契食品厂房提供终极长期价值主张，带来长期运营增长与保障。租户无需担心租约到期后失去租用空间，或承担重大搬迁成本。

这对资本密集、装修沉没成本往往很高的中央厨房运营商尤为重要。投资者也可确信租户需求具韧性，并能获得稳定的经常性收入流。

价格溢价与稳定租金

与租赁地契同类资产相比，永久地契食品厂房成交价一直明显更高。这反映出投资者愿意为拥有永久地权的资产支付溢价。

裕廊集团（JTC）数据显示，2026年第二季租赁地契食品厂房成交中位价约在每平方英尺新币600元区间，而永久地契食品厂房售价约每平方英尺新币1500元。近期部分永久地契食品厂房成交记录于Citrine Foodland @ 金泉路33号和CT FoodNex。

至于租赁市场，一般多用户厂房板块表现具韧性。JTC数据显示，2018年第一季至2026年第二季，食品厂房所在多个规划区的多用途厂房中位租金呈上升趋势。

这些地点中，大士录得最强租金增幅，达83.3%，其次是三巴旺79.2%和后港53.3%。双溪加株若干永久地契食品厂房亦出现正向租金走势，平均租金上升52.2%。

相比之下，金文泰升幅较小，为14.3%，而大巴窑上升10.4%。

各规划区中，大巴窑租赁需求最高，达251份租约，其次是金文泰（226份）、三巴旺（216份）和双溪加株（123份）。

万礼和大士是首选地点

许多运营商一直占用万礼和兀兰的食品厂房空间，这些地点运营空间更大，成本低于零售空间。

这些地点的食品厂房将进一步受惠于双溪加株生态区总体规划转型。当局正打造农粮生态系统，以配合邻近的圣诺哥食品区和林厝港农场，支持粮食供需需求。

食品制造商及相关科技公司将被吸引至该区，形成更大的食品厂房租户池。若投资者在此购入新食品厂房，长期将享受更强租金需求及更高投资价值。

Food Vision是最新落成项目之一

市场上永久地契食品厂房很少。Food Vision @ Mandai是最新落成的永久地契食品厂房之一。由森联发展与EL Development联合开发，这座10层永久地契坡道式B2食品厂房设有114个生产单位和一间员工食堂。

这座新近落成的项目将为食品生产和中央厨房运营提供新空间。其位于成熟的万礼食品制造集群内，使企业能就近对接供应商和分销商，提升运营效率及全岛物流连通。

持久价值

在资产价值随时间折旧的市场中，永久地契食品厂房将继续为投资者提供具说服力的主张。价值保全有助于让投资者和餐饮从业者获得具吸引力的长期回报，而租户则受惠于永久产权保障。

随着新加坡持续巩固其作为区域食品创新与研发枢纽的地位，对优质且受高度监管的工业空间的需求预计将在未来数十年进一步增长。