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B1 vs B2 Zoning
Could your choice of industrial space be quietly exposing your business to regulatory risks—or worse, eviction?
Understanding B1 vs B2 zoning isn’t just compliance—it’s about safeguarding your operations and reputation.
URA B1 vs B2 Zoning Differences
FAQ
B1 (Business-1) is intended for clean and light industries, such as electronics, software, packaging, media, and R&D, with minimal environmental impact. B2 (Business-2) caters to general or heavy industries involving heavier manufacturing, machinery, vehicle servicing, chemical or biotech operations—typically with higher environmental impact. Read more about URA guidelines on B1 and B2 allowable uses.
Yes there are. For B1 zones, National Environment Agency (NEA) requires a nuisance buffer of up to 50 m to protect surrounding areas (sometimes located near to residential areas) from noise disturbances. B2 zones require a 100 m buffer due to greater noise, emissions, or industrial disturbance.
Both B1 and B2 industrial developments must allocate at least 60% of their Gross Floor Area (GFA) to core industrial activities. Up to 40% can be used for ancillary functions—like offices, showrooms, or canteens—provided they directly support industrial operations.
- B1 Suitable Trades (includes but not limited to): Software development, light manufacturing, high-tech production, electronics assembly, printing, publishing, e-business, media production, Data Science and Analytics, Robotics and Automation, distribution and warehousing, and packaging.
- B2 Suitable Trades (includes but not limited to): Automotive workshops, machinery repair, metal fabrication, fabrication, recycling, chemical or biotech production, logistics, marine, oil utility infrastructure.
No. The 60:40 rule applies. Only 40% of GFA can be used for ancillary uses like meeting rooms, ancillary display area, pantry, and they must support industrial functions. Misuse may lead to enforcement actions. If you need to convert the original intended usage of the building such as from factory to showroom, please apply for Change-Of-Use from the relevant authorities.
Do note there may be Land Betterment Charge (LBC) payable if the land value is enhanced from the new commercial activities. The LBC is a tax on the increase in value of land arising from a chargeable consent (e.g. planning permission) given in relation to a development of any land.
The Land Betterment Charge Act came into effect on 1 Aug 2022, consolidating charges for land value enhancement under the Singapore Land Authority (SLA). This new scheme replaced the previous development charge, temporary development levy, and differential premium regimes. Previously used Development Charge (DC) Table of Rates was substituted with the LBC Table of Rates, and is subject to revision every 6 months.
Yes, allowable non-essential uses such as showroom, canteen, ancillary offices, ancillary display area, worker’s dormitory and selected commercial uses (in outlying areas) may be allowed under specific B1 guidelines capped at 40% of building’s GFA (Click Here For B1 URA Guideline) Childcare centres (CCCs) are allowed only in B1 zones, subject to NEA and ECDA (Early Childhood Development Agency) approval—not permitted in B2.
You can check URA e-Services portal to identify zoning classification for a specific address. Alternatively, consult URA’s zoning maps or ask your agent/developer. Building plans submitted to BCA may also indicate zoning.
Breach of the rules can lead to enforcement notices, planning penalties, revocation of permits, or operational shutdowns. See real enforcement case study of My Digital Lock at A’ Posh Biz Hub, Yishun below.
Yes. There are no significant ownership restrictions. Singapore citizens, Permanent Residents (PRs), and foreigners can buy industrial property in any locations. Industrial properties are not subject to Additional Buyer Stamp Duty (ABSD), although Seller Stamp Duty restrictions (SSD) still apply.
Government Clampdown
Regular Checks by Authorities
URA and JTC have been conducting regular checks on industrial buildings regularly and found widespread misuse. Some companies were using B1 spaces as call centres, gyms, private schools, and even event halls without proper change-of-use approval. Others ran heavy-duty workshops in B1-zoned properties.
The outcome?
- Several tenants were forced to vacate immediately.
- Landlords faced compliance action.
- Businesses had to bear relocation costs and operational downtime.
Real Enforcement by URA
November 2023 : My Digital Lock at A’ Posh Biz Hub, Yishun
A local digital lock company who have several branches islandwide, My Digital Lock operated a showroom at ground floor or A’Posh Biz Hub at Yishun Industrial St 1 (B1-zoned building) without the requisite planning permissions. As the land is primarily designated for use as factories and warehouses, URA issued enforcement notices and demanded Land Betterment Charges from change-of-use of nearly S$500,000 (for their HQ that comprises of 3 units) every 3 years. The owner, Mr Ronn Teo describe his ordeal and even posted a Facebook video about it.
The following table is extracted from a written parliamentary reply by Ministry of National Development (MND) dated 22 Nov 2023, to show number of violations of commercial properties uses detected and enforced against:
Table 1: Violations for unauthorised commercial uses
| 2020 | 2021 | 2022 | 2023 (till Oct) | |
| No of violations detected and enforced against | 75 | 109 | 53 | 56 |
This is a real reminder that zoning regulations are actively enforced, not just written on paper.
Selecting the Right Zone
Ask Yourself
- Does my business generate noise, dust, fumes, or vibrations from heavy equipment operation? If yes, likely B2 industrial properties will fit better.
- Do I need frequent client visits or a professional corporate image? If yes, consider Hi-Specs Industrial Building that allows only clean trades.
- Do you need a clean image and accessible location? → B1 building may fit better. Consider also Hi-Specs Industrial Building that has a better corporate image.
- Will your operations involved high-tech production and research that do not generate much noise and pollution? → Consider either B1, Hi-Specs Industrial Building or Business Parks (provided if your trade qualifies for business park use).
- Do you want to have showroom that have clear visibility to the public? → Consider either Commercial Retail Space or industrial building that have approved permission for showroom/retail usage. If no ready approval, then you will need to apply for Change Of Use from the authority and there might be additional charges payable such as Land Betterment Charges (LBC).
Why Working with a Seasoned Agent Makes Sense
An experienced industrial property agent navigates zoning nuances, helps you avoid compliance pitfalls, and finds spaces that genuinely align with how you operate and grow.
If you’re unsure whether your business space meet URA/NEA requirements, let’s talk. Being in the right zoning isn’t just regulatory. It impact your business’s operations more than you think.
