Food Factory in Singapore
Singaporeans love eating out or ordering takeout via delivery service apps. According to a recent survey, only 22% of Singaporean households cook at home. Rakuten Insight found that 24% of Singaporeans dine out or buy outside meals daily, while 48% do so several times a week.
The demand for outside meals has spurred demand for food factories in Singapore. “Due to labour shortage and high rents in commercial spaces, most F&B outlets cannot afford to allocate too much space for kitchens,” says Lim Yew Soon, managing director of EL Development. “To save on kitchen space and reduce the number of kitchen staff, they outsource the bulk of the cooking process to food factories.”
The Cheapest New Launch Food
Factory in Singapore
Ecofood @ Mandai is not just a commercial development; it’s an architectural masterpiece. The design seamlessly integrates modern aesthetics with functional efficiency, creating a space that is both visually appealing and highly practical. The façade boasts a contemporary look, characterized by clean lines and expansive glass panels that allow natural light to flood the interiors, reducing the need for artificial lighting and promoting energy efficiency.
Each of the 69 units, including a dedicated canteen, is meticulously designed with a floor-to-floor height of 5.6 meters, providing ample vertical space for various food production and processing needs. The thoughtful layout ensures smooth workflow, facilitating operations such as cooking, packaging, and storage with unparalleled ease. Moreover, the inclusion of separate lifts for raw and cooked food products underscores the commitment to maintaining the highest standards of hygiene and preventing cross-contamination.
Beyond functionality, the development incorporates pockets of greenery on multiple levels, offering communal areas where businesses can host events, conduct meetings, or simply unwind. These green spaces not only enhance the aesthetic appeal but also contribute to the well-being of occupants, fostering a sense of community and collaboration among tenants.
In every structural decision, there is a deeper philosophy at play—Ecofood @ Mandai is designed not just as a food factory, but as an ecosystem. The building becomes a tool for businesses to thrive, creating a balance between industrial power and human-centric design. The smart integration of form and function inspires confidence, creativity, and growth, setting a new benchmark for future-ready commercial spaces in Singapore’s evolving landscape.
The new, 10-storey, freehold, ramp-up food factory —
Food Vision @ Mandai — has 115 strata-titled units for sale.
Since its launch in late 2022, about 40% of the units at
Food Vision @ Mandai have been sold. Based on caveats lodged, units of around 1,722 sq ft each were sold at an average of $1,434 psf. The project is targeted for completion next year.
Most of the buyers were end-users looking for a central kitchen or food-processing space. More investors have been eyeing food factories, switching from residential properties since the property cooling measures of April 2023, when additional buyer’s stamp duty for foreigners and corporate entities were increased.
Artist’s impression of the 114-unit, freehold Food Vision @ Mandai by EL Development and Sim Lian Group, which is 40% sold and scheduled to be completed next year
Artist’s impression of Smart Food @ Mandai, where a VIP preview was held in January 2024, and 30% of the 84 freehold units have been sold
Mandai Estate Food Factory
Lian Beng Group was one of the first developers to launch a strata-titled, multi-user food factory in the Mandai
industrial estate in the northern region. The project — Mandai Foodlink — is an 87-unit, 11-storey building at Mandai Link.
The site was purchased through a IGLS tender and has a 30-year lease from 2013. The project was launched in November 2014, completed in 2017, and fully sold by 2018.
Other developers have jumped on the bandwagon. It has led to a flurry of new strata-titled, multi-user, food factory developments launched in Mandai in recent years.
In 2021, Hong Kong-listed ZACD Group and Welltech Construction jointly launched the 47-unit FoodFab@Mandai in Mandai Estate. The 8-storey, freehold, strata-titled food factory is substantially sold at prices ranging from $2.095 million ($1,125 psf) for a 1,862 sq ft unit on the ninth floor to $4.976 million ($1,700 psf) for a 2,928 s ft unit on the second floor. The highest psf price achieved was $2,077 psf in September 2022, when a 2,142 sq ft unit on the first level fetched $4.45 million.
In July 2022, Chiu Teng Group purchased the former BHL Factories site at 2A and 2B Mandai Estate for $130 million. The 80,288 sq ft, freehold site is being redeveloped into
CT FoodNex — a 10-storey, freehold, ramp-up food factory with 110 units.
Launched in May 2023,
CT FoodNex‘s units, which range from 1,700 to 2,928 sq ft, were priced from $2.5 million. Within the first week of launch, 61 units (56%) were taken up at an average price of $1,545 psf. To date, close to 80% have been sold.
While most buyers of
CT FoodNex were single-unit buyers, several were multiple-unit purchasers who bought two or three units, including one who bought an entire floor of 12 units, following the launch last year. About 90% of the buyers were Singaporeans, and the remaining 10% were foreigners.
The new development —
Smart Food @ Mandai — is a 10-storey, freehold, ramp-up factory building with 84 strata-titled factory units for sale. In January, the developer held a VIP preview for
Smart Food @ Mandai, and about 30% of the units were sold.
Many of the buyers are end-users who intend to use the space as a central kitchen or a cold room.
The long-term potential of Mandai Estate’s location is its proximity to the Sungei Kadut Eco-District. A master-planned rejuvenation initiative, the precinct will feature new developments, such as the Agri-Food Innovation Park and Kranji Green, which will cater to food technology companies.
Investing in a food factory in Singapore can be a promising opportunity, depending on your goals, risk tolerance, and the specific market conditions you’re targeting. Singapore’s food industry has been growing steadily, driven by factors like increasing demand for high-quality and safe food products, a surge in food delivery services, and the city-state’s strategic position as a global trade hub. Here’s a breakdown of why it might be a good investment, along with some considerations:
Why Food Factory Could Be a Good Investment
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Growing Demand: Singapore’s food manufacturing sector is expanding, fueled by a rising population, higher disposable incomes, and the popularity of e-commerce and food delivery platforms like GrabFood, Deliveroo, and Foodpanda. This has increased the need for production facilities, including food factories, to meet both local and regional demand.
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Government Support: The Singapore government actively supports the food industry through initiatives like the Food Services Industry Transformation Map (ITM) and investments in food innovation (over $220 million in the agrifood sector). Grants, incentives, and a business-friendly environment make it easier for food-related businesses to thrive, which indirectly boosts the value of food factory investments. Singapore Government also intent to increase Singapore produced food from 10% (in 2024) to 30% by 2030. Thats 3 times the amount of food production that requires food factory, meaning high in demand and low in supply (In 2023, Singapore had 2,171 licensed food processing/manufacturing establishments, thats more rare than GCB There are approximately 2,700-2,800 Good Class Bungalows (GCBs) in Singapore) . This will result in increase in price of food factory.
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Strategic Location: Singapore’s world-class logistics network and proximity to Southeast Asian markets make it an ideal base for food manufacturers looking to export. This enhances the appeal of owning a food factory, especially in areas like Mandai or Pandan Loop, which are well-connected.
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Stable Returns: Food factories, particularly in designated industrial zones, can offer rental yields of 5-7%, according to some market insights. Freehold properties, though rarer, can also appreciate over time due to limited supply, especially in high-demand areas. Cloud Kitchen starting from $3000 for 100 sqft = $30psf, $5000 for 250sqft = $20psf. Just assuming $10psf X 12 months / $1500psf =Â 8% yield for a freehold food factory
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Emerging Trends: Technological innovations to improve the efficiency, yield and profitability of agri-food production. SFA will work with farmers to use such technology to transform agriculture practices and raise productivity, to achieve our 30-by-30 goal. This include muilt-stories hydroponics that take advantage of the high ceiling of
high spec food factory.
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Less Restrictions: Unlike residential properties, commercial properties like food factories face no Additional Buyer’s Stamp Duty (ABSD) or foreign ownership restrictions, making them accessible to a broader pool of investors.
Opportunities to Watch
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Freehold vs. Leasehold: Freehold food factories (e.g., CT Foodnex) are scarce and could offer long-term value appreciation, while leasehold options provide lower entry costs but limited tenure.
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Sustainability Focus: Facilities that support eco-friendly production or cater to the growing plant-based market may attract premium tenants and government backing.
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Tech Integration: Factories equipped for food-tech innovations (e.g., automation, fermentation) could tap into Singapore’s push to become a food innovation hub.
Final Thoughts
A food factory in Singapore can be a solid investment if you’re prepared for the upfront costs and regulatory demands, and if you target high-growth areas or emerging niches like sustainable food production. It’s not a get-rich-quick option, but rather a strategic play in a stable, government-backed industry with regional reach. To make an informed decision, consider conducting detailed market research, consulting a realtor specializing in industrial properties, and aligning your investment with long-term trends like food security and innovation. What’s your investment horizon and budget? That could help narrow down whether this fits your plans!
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