Singapore’s strata food factory prospects remain sound

Sales of strata food factories in Singapore might have slowed in recent quarters, but the outlook for this niche sector remains promising.

According to JLL’s findings from the fourth quarter of 2025, there are close to 1,200 completed strata food factory units across Singapore, of which around a third are freehold units. This includes CT FoodNex (109 units), Food Vision @ Mandai (115 units) and Food Ascent (125 units), which were completed in 2025.

Looking ahead, supply is expected to remain limited. By 2028, the islandwide stock could grow to over 1,700 units, representing an increase of just over 500 units. Except for Gourmet Xchange (263 units), the rest of the upcoming supply is spread across smaller developments of less than 100 units each, limiting concentration risk. These include Smart Food @ Mandai (84 units), Harrison Food Building (42 units) and Food Point @ Tai Seng (47 units).

Recent government initiatives are expected to drive the growth of Singapore’s food processing and manufacturing industry. Food operators are also encouraged to centralise food preparation for better cost and operational efficiency, which would generate new food factory requirements.

For example, Enterprise Singapore announced new initiatives in October 2025 to help 1,000 food and beverage (“F&B”) businesses reduce costs with centralised preparation and better processes over the next two years. One such measure is the FoodX Programme, which matches the companies with a suitable contract manufacturer from over 60 food manufacturing and equipment manufacturing partners.

This could boost demand for third-party food manufacturing services and encourage F&B companies to outsource their food preparation, increasing the utilisation and demand for dedicated food factories.

Meanwhile, Singapore announced revised farming goals in November 2025. The aim is to produce 20% of the city’s fibre consumption needs, such as leafy and fruited vegetables, bean sprouts, and mushrooms, by 2035. The country also seeks to produce 30% of its eggs and seafood consumption by the same year. These targets should further increase the demand for local food facilities to accommodate activities such as food packaging and distribution.

Additionally, sustained demand for food delivery services and the expected growth of Singapore’s F&B services industry, combined with changing consumer preferences (e.g. ready-to-eat meals), should continue to drive the need for cloud and central kitchens. This in turn underpins demand for the food factories.

We expect the strata food factory sub-sector to remain attractive to niche investors seeking specialised assets in Singapore’s industrial property market. While the addition of 349 units in 2025 intensified competition for tenants and may have reduced investor interest for now, future demand prospects appear sound. Coupled with the current favourable interest rate environment, this could prompt buyers to secure their purchases.