23 Playfair Road: A rare S$21 million freehold food factory investment opportunity with proven potential

In Singapore’s tightly controlled industrial property landscape, opportunities to own a freehold site are few and far between. Even rarer is one that comes pre-approved for a six-storey food factory, strategically located in the Tai Seng–Paya Lebar corridor, and endorsed by a respected entrepreneur known for his foresight in both retail and F&B.

The property at 23 Playfair Road, listed at S$21 million, stands as one of those rare gems. There are ongoing negotiations for the purchase of this listing as of the date this article was written, as shared by Eric Lee from TheMarketPlace – PropNex, who is managing the sale of the site.

Property overview: Solid foundation for growth

The site spans approximately 676.6 sqm (7,282 sqft) and carries a plot ratio of 2.5 under B1 industrial zoning. It’s suitable for a range of light industrial activities, including food factory operations.

Currently used as a warehouse and self-storage facility, the property is fully fitted for immediate use. “This makes it especially appealing to businesses that need ready operational space without extensive retrofitting, while still allowing room for future redevelopment plans,” Eric explained. 

At an asking price of S$21 million, this works out to roughly S$2,884 per square foot (psf) based on land area. Eric emphasised that this valuation sits comfortably within current benchmarks for freehold industrial assets in District 13, and aligns closely with the bank’s appraised value – a clear sign that the pricing reflects real market fundamentals rather than speculation.

Its Provisional Permission (PP) from the Urban Redevelopment Authority (URA) was first granted in 2023 and extended through March 2026, approving the proposed erection of a six-storey multi-user food factory with a gross floor area of 1,691.5 sqm.

According to Eric, this pre-approval is a significant advantage. “Unlike most industrial plots that require months of submission and assessment, 23 Playfair Road already has its groundwork done. Developers can move faster and begin design finalisation almost immediately,” he shared. 

Adding to its appeal, the existing structure consists of a single-storey factory with a small two-storey office, all maintained in original condition. This translates into lower tear-down costs and a faster transition to the construction phase once redevelopment begins. 

Why are freehold industrial assets so coveted? 

Drawing on his experience handling high-value industrial deals, Eric explained that freehold plots have become a rarity in Singapore’s market. “And that’s why the true power of this investment lies in its freehold tenure,” he said.

Nearly all new industrial plots released by the JTC are leasehold, typically capped at 30 or 60 years. The government stopped issuing freehold industrial land decades ago, meaning supply is now permanently limited to resales or en-bloc acquisitions.

This creates what analysts call the “freehold scarcity premium” – perpetual ownership that retains value while leasehold properties depreciate. “For investors, it’s not just about tenure; it’s about flexibility. A freehold gives you the freedom to redevelop, refinance, or repurpose anytime without worrying about lease decay,” he added.

Industrial freeholds, especially those with specialised food-factory approvals, are in constant demand from institutional buyers and high-net-worth individuals seeking land-banking opportunities. 

A strategic location at the heart of Singapore’s growth belt

When asked, Eric expressed strong confidence that this land will be taken up quickly because of its accessibility and connectivity.

Sitting at the crossroads of accessibility and efficiency, 23 Playfair Road enjoys one of the more strategic addresses for food-related businesses in the country. Nestled within District 13’s Tai Seng industrial zone, the site is surrounded by a thriving ecosystem of food manufacturers, processing facilities, and logistics operators.

Eric highlighted that this clustering effect naturally builds synergy and business support, making the area especially valuable for companies in the F&B production and distribution chain.

For food manufacturers, location determines operational efficiency – and Tai Seng delivers on that front. The property is 7 minutes (580m) from Tai Seng MRT Station on the Circle Line, ensuring easy public transport connectivity for staff, suppliers, and clients. “That ease of access,” Eric explained, “translates into smoother daily operations and better engagement with partners who need to visit the site regularly.”

From a logistical standpoint, 23 Playfair Road also offers unmatched convenience. The site connects seamlessly to major expressways, including the Kallang–Paya Lebar Expressway (KPE), Central Expressway (CTE), and Pan-Island Expressway (PIE), providing fast and reliable access to Singapore’s city centre, port terminals, and key distribution hubs. Eric added that these links significantly improve distribution efficiency, a key consideration for companies handling time-sensitive food deliveries.

The surrounding Tai Seng commercial cluster has been steadily modernising over the years, transforming into a mixed-use hub where business functionality meets everyday convenience. Eric noted that this well-rounded environment enhances the area’s business appeal and supports long-term growth in land value.

As Singapore’s central food corridor continues to evolve, Eric believes that sites like 23 Playfair Road are well-positioned to benefit. Its connectivity, infrastructure, and established ecosystem make it an ideal base for central kitchens, processing facilities, and distribution centres. Whether your focus is optimising logistics, scaling food production, or harmonising day-to-day operations, this address offers the infrastructure and accessibility to help your business thrive.

And as the Paya Lebar Air Base relocation progresses toward 2030, Eric expects surrounding land values to rise, further strengthening the investment case for this freehold site. 

Development readiness: The F&B factory advantage

As mentioned previously, another standout feature is the property’s URA-approved plan for a six-storey multi-user food factory. 

Eric pointed out that in today’s industrial market, developers typically compete for two main categories: worker dormitories and food factories. The former, he explained, has shown remarkable staying power thanks to Singapore’s strong food production and delivery ecosystem.

By purchasing a site that already holds valid Provisional Permission, investors can skip lengthy application processes. “You’re saving not just time, but also financing costs and uncertainty,” Eric said. All setback and zoning assessments have been approved – meaning you can proceed directly to design finalisation and construction.

For an investor, this translates into months saved and faster rental revenue generation. Once completed, the development can host multiple tenants, from central kitchens to packaging companies, maximising rental yield diversity and cash-flow stability.

Market benchmark: The former Noel Building’s success story

Eric referenced the former Noel Building next door as a key indicator of market appetite.

Located at 50 Playfair Road, the freehold site was sold for S$81.18 million, achieving about 17% above its guide price – a clear indication of how strongly buyers value prime food factory plots in this district. It has since been redeveloped into FoodPoint @ Tai Seng, a 12-storey, high-specification food factory that continues to draw interest from both investors and operators.

While that was an en bloc transaction, which typically commands higher pricing due to scale and redevelopment potential, what stands out is the market sentiment it reflects. Investors were willing to pay well above expectations – not just for size, but for the strategic location, freehold tenure, and food factory zoning that make properties like these increasingly scarce. “Deals like that prove there’s still deep demand for freehold industrial land,” Eric explained, “especially when it’s ready for redevelopment and zoned for F&B use.”

For 23 Playfair Road, offered at S$21 million, the entry quantum is far more accessible, yet the fundamentals are similar: a freehold title, F&B pre-approval, and prime city-fringe positioning. This positions it as a lower-entry alternative in the same growth corridor – one that still offers exposure to the same demand drivers pushing up values in Tai Seng.

Financial outlook and rental yield potential

Beyond the long-term appreciation expected from the Paya Lebar Air Base (PLAB) uplift, Eric highlighted that the rental outlook for high-spec food factories remains robust.

According to Savills’ Industrial Briefing for Q2 2025, freehold industrial properties have shown consistent price resilience, rising 2.3% quarter-on-quarter to reach an average of S$850 per square foot. 

Market demand also supports this investment case. In Q2 2025, the industrial leasing market expanded by 7.6% year-on-year, reaching its highest level since 2021. The multiple-user factory segment, which includes developments like the proposed six-storey food factory at 23 Playfair Road, saw a 5.7% rise in leasing activity over the same period. This sustained demand for modern, flexible industrial spaces ensures a healthy tenant pipeline once redevelopment is completed.

Rental forecasts for the rest of 2025 remain equally optimistic. With new supply moderating, rents for multiple-user factories are expected to grow between 0% and 3% year-on-year, supported by tightening vacancy rates. Meanwhile, high-spec industrial properties, similar to the food factory envisioned here, recorded a 2.1% quarter-on-quarter rent increase to an average of S$3.98 per square foot, driven by a clear “flight-to-quality” trend among businesses upgrading to more efficient, compliant spaces.

These numbers translate into a clear opportunity and Eric expects these trends to persist, supported by limited new supply and sustained F&B sector growth. Comparable sites such as Tai Seng Point currently yield around 3.0%, and given 23 Playfair Road’s freehold status, central accessibility, and purpose-built approval, it can reasonably be expected to achieve equal or higher returns once completed and leased.

Wrapping up

In a market defined by limited supply and growing demand, 23 Playfair Road stands out as an opportunity that combines everything serious investors look for: freehold security, development readiness, and proven demand.

It is priced at valuation, pre-approved for a lucrative use, and situated in one of Singapore’s most strategically evolving districts. With its proximity to the CBD, alignment with long-term urban redevelopment, and endorsement by a visionary owner, it represents the kind of industrial acquisition that builds wealth quietly but powerfully over time.

This is not just another industrial listing – it’s a strategic asset awaiting its next chapter. 

For enquiries, contact Eric Lee from TheMarketPlace – PropNex at +65 8332 0473.

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