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Allowable Usage for Industrial Property?


If you are new to industrial properties, you may be confused when you first hear about B1, B2 etc. What does these acronyms represent?


This is one of the common question we hear when we speak to new investors or new real estate salesperson. Though albeit lesser over the years, we thought it would be good to share on this.


Industrial properties, unlike residential properties, comes with complexity of usage, masterplan zoning, specifications, regulatory requirements etc.


Under the NEA's Code of Practice on Pollution Control , there are 4 main categories:

  • Clean Industries

  • Light Industries

  • General Industries

  • Special Industry

Business 1 (also known as B1 in short) refers Clean & Light Industry, such as software design, fashion design, IT services, media etc.


Business 2 (also known as B2 in short) refers to heavy Industry such as car servicing, metal stamping, welding, carpentry, food factories etc.


Whether it is B1 or B2, all factories need to fulfil the criteria of 60-40. At least 60% of the total industrial GFA (ie minimum 60%) shall be used for industrial purpose. The remaining 40% may be used for ancillary (or supporting) uses. For more information, please refer to the URA link below.


To check the zoning of whether a building is for Business 1 or Business 2 usage, please refer to the URA masterplan. To find out more about how to check the zoning, keep a lookout for our next few sharings.


References




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