4 Types of Property in Singapore and How They are Evaluated

Property valuation in Singapore isn’t a one-size-fits-all. From investing in a landed home to leasing a commercial space, how a property is valued depends largely on its classification and purpose. Residential flats, industrial facilities, and other types of property in Singapore each come with their own risk profiles, regulatory considerations, and valuation methodologies. Let’s explore the four main property categories and their common valuation methods.

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Key Takeaways:

Why do different types of property in Singapore require tailored valuation methods?
Because each property class—residential, commercial, industrial, and retail—has unique characteristics, valuers use tailored approaches such as the comparative, income, or discounted cash flow methods to reflect true market value.
How does understanding valuation criteria benefit property decisions?
Knowing what influences the value of different types of property in Singapore—from location and lease terms to tenant mix and market yields—empowers investors and businesses to optimise asset performance and make data-driven property decisions.

Introduction

For businesses, investors, and corporate landlords, understanding how different properties are appraised helps improve decision-making, compliance, and asset optimisation. Let’s explore the four main property categories and their common valuation methods.

How Are Different Types of Properties Evaluated in Singapore?

1. Residential Property Valuation

Evaluating residential real estate in Singapore focuses heavily on these attributes:

Location and proximity to MRT stations, schools, and amenities
Floor area and unit layout
Tenure (freehold vs leasehold)
Comparable recent transactions in the same area
Project age and upkeep
Unit mix and occupants profile

These factors help valuers to determine fair market value when assessing HDB and residential property value. Valuers often adopt the comparative method, analysing similar transactions nearby to arrive at an objective estimate. For larger plots or landed homes, redevelopment potential may also be factored in.

2. Commercial Property Valuation

Commercial building valuation involves far more than just square footage. Offices, business parks, and mixed-use developments are often appraised using the income approach, which emphasises rental income potential and operating expenses.

Key considerations include:

Occupancy rates and lease durations
Gross rental income and net operating income (NOI)
Market yield expectations and cap rate (capitalisation rate)
Location within key business districts
Building grade (e.g., Grade A) and amenities
Tenant mix and trade

In Singapore’s competitive commercial landscape, valuation quality is vital for REITs, developers, and portfolio managers. If you’re dealing with commercial and industrial real estate, having a reliable valuation helps inform leasing strategies, acquisitions, and long-term ROI planning.

3. Industrial Properties Valuation

The valuation of industrial assets, such as warehouses, factories, and logistics hubs, requires a different lens altogether. Governed by land use zoning (B1 for light industry and B2 for heavier operations), these properties often come with shorter leasehold tenures from JTC or SLA.

When assessing industrial property value, professionals consider:

Land use and plot ratio
Remaining lease duration (especially for 30- or 60-year leases)
Accessibility for transport and goods movement
Facility type (ramp-up, flatted, or high-specs)
Suitability for modern logistics or production needs
JTC land rent for JTC properties
IRAS property tax
Any upfront land premium for JTC properties

Unlike residential units, property valuation methods here may also include cost-based and income-based assessments, especially for specialised facilities with heavy infrastructure or machinery installations.

4. Retail Property Valuation

Retail spaces, ranging from shophouses to strata-titled mall units, are perhaps the most sensitive to market cycles and consumer sentiment. Retail property market trends like footfall, anchor tenants, and tourism flows all could affect asset value.

Valuation metrics often include:

Current and projected rental income
Tenant mix and lease structures (e.g., gross vs turnover rent)
Surrounding competition and demand zones
Exposure and accessibility (street frontage, traffic volume)

For landlords and investment firms, understanding the nuances of retail property valuation is key to forecasting returns and securing financing. In these valuations, it is common to see the use of the capitalisation method, which factors in net income and market yields.

Why Valuation Strategy Matters

From residential real estate valuation to commercial building valuation, each asset class comes with its own unique metrics, market drivers, and risk considerations. For stakeholders involved in commercial and industrial real estate, engaging a professional valuer who understands the latest regulatory frameworks and market conditions is essential.

Whether you’re planning to restructure your portfolio, acquire new assets, or simply want to check the valuation of property, choosing the right property valuation methods tailored to the asset class is non-negotiable.

At CKS Property Consultants, our team delivers data-driven valuation insights across all major types of property in Singapore. Our valuation reports are signed off by licensed appraisers, giving you the confidence that your property decisions are compliant and future-proof.

Get in touch to gain tailored insights across your residential, commercial, or industrial portfolio.