Why So Small & Leasehold Only?

Why 150 m² Makes Units More Affordable And Flexible

A 150 m² unit (about 1,600 sq ft) can feel “tiny” if you are used to older, big landed factories, but it serves some clear policy and business objectives.

• MTI’s press releases highlight that shorter-tenure, smaller-size sites allow industrialists – particularly SMEs – to customise land-based facilities at more affordable prices.​

• Commentary from market observers notes that smaller, shorter-tenure IGLS sites help keep prices “within reach of genuine industrialists” and reduce the appeal to casual or speculative investors.​

For SMEs, 150 m² helps because:

• The total price and downpayment are much lower than for a 5,000–10,000 sq ft factory, so ownership becomes realistic for more businesses.​

• You can expand in stages – for example, by buying or renting additional units later – instead of locking up large capital in space you do not fully use yet.​

In short, 150 m² is small by design, so more real businesses can own industrial space and scale up gradually as they grow.

Why New Industrial Land Is 30 Years (And Freehold Is Rare)

The 30-year tenure is not an accident; it is part of the same affordability and flexibility push.

• MTI and subsequent media reports are explicit: halving the maximum IGLS lease from 60 years to 30 years was meant to make industrial land cheaper and increase the Government’s flexibility for future land redevelopment.​

• The shorter leases mean sites revert to the State earlier, so land can be recycled for new industries and higher-value uses, rather than being locked into one use for many decades.​

What this means in practice:

• New government industrial sites released through IGLS are now typically on 20–30 year leases, depending on the plot, not on 60‑year or freehold tenure.​

• Older/private stock that was sold earlier can still have 40‑, 60‑year or freehold tenure, but these are legacy assets; the Government is not releasing new freehold industrial land through IGLS.​

So “no more freehold” really means: no more new freehold from the government land pipeline; existing freehold or long-lease industrial still exists, but it is a finite, shrinking pool.

Does 30 Years Apply To All Industrial Projects (Including Food Factory)?

This is where many people misunderstand the policy.

• The 30-year cap applies to new industrial sites sold under IGLS (and similar JTC greenfield allocations) from 2012 onwards. It does not retroactively shorten leases for existing older industrial projects.​

• Some new IGLS plots are even shorter – about 20–22 years – especially small plots in Tuas South aimed at SMEs who want to build their own facilities quickly and affordably.​

• Food factories on JTC industrial land follow the same overall framework of finite industrial leases (commonly 20 or 30 years for new sites). Recent enhancements to the industrial land lease framework add three years to cover the development period so businesses enjoy the full 20 or 30-year productive term.​

• Food or agri-tech uses on land managed with agencies like Enterprise Singapore/SFA are also on lease/licence terms, not freehold, though the exact tenures and renewal rules are set under those specific schemes.​

So the short answer is: no, not every industrial project is “exactly 30 years”, but yes, the whole direction for new industrial and food factory land is towards finite, recyclable leases, typically 20–30 years rather than 60 years or freehold.

How 150 m² And 30 Years Can Still Work As An Investment

Even without freehold, 150 m² units on 20–30 year leases can still make sense as investment tools – if you think in the right time frame.

• Analysts and commentators note that shorter-tenure industrial sites are cheaper to acquire and can offer higher yields, but their value depends more heavily on timing, remaining lease and rental demand.​

• For many SMEs, the realistic planning horizon is 10–20 years, not forever. Over that window, a 30-year lease can still:

  • Lock in premises costs versus rising market rents.

  • Provide rental income if you outgrow the space and lease it out.

  • Deliver a capital gain if you enter at a sensible price and exit with sufficient lease remaining.​

The key is to treat a 150 m², 20–30 year industrial unit as a productive tool for the next 10–20 years, not as a multi‑generation land bank. If you price in the finite lease and align it with your business plans, it can still be both an affordable premises solution and a reasonable investment vehicle.