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Lum Kong Building Review

Lum Kong Building Review
Industrial & Commercial Property Review — District 13

Lum Kong Building

A strata-titled B1 light industrial building on Tannery Lane, positioned between MacPherson, Potong Pasir and Aljunied.

SGCPI Research Desk Updated 14 August 2026 18 Tannery Lane, Singapore 347780 ≈60-YR LEASEHOLD FROM 1996

Street-level view of Lum Kong Building, 18 Tannery Lane. Imagery: Google Street View (user-contributed imagery), accessed August 2026.

Project Overview

Building NameLum Kong Building
Address18 Tannery Lane, Singapore 347780
DistrictDistrict 13 (MacPherson / Potong Pasir)
Tenure≈60-year leasehold from 1996 (≈30 yrs remaining)
Zoning / UseB1 Light Industrial
Built Form≈8-storey light industrial block with ground-floor loading bays
Land Area / GFA≈1,800 sqm land / ≈9,500 sqm GFA
Completion Year≈1997
Nearest MRTPotong Pasir (NE10), MacPherson (CC10), Aljunied (EW9)
Key Road AccessMacPherson Road, Aljunied Road, Pan Island Expressway (PIE)
Transacted PSF Range≈S$650 – S$850 psf
Sale Price Range≈S$450,000 – S$1.8 million
Asking Rent Range≈S$2.20 – S$3.20 psf/month
Occupier BaseLight manufacturing, electronics, F&B production, distribution SMEs

Location & Connectivity

Lum Kong Building sits on Tannery Lane, a short light-industrial enclave tucked between MacPherson Road and Aljunied Road in Singapore’s District 13. The estate has historically served small and mid-sized manufacturers, and it retains that character today, sitting alongside similarly aged strata blocks that together form one of the older B1 clusters in the eastern-central corridor.

Connectivity is a genuine strength of the address. Potong Pasir MRT (NE10) and MacPherson MRT (CC10) are both within reasonable reach, with Aljunied MRT (EW9) offering a third option depending on which part of the lane a unit sits in. This gives occupiers and staff a choice of lines — North East, Circle and East-West — which matters for hiring in a tight labour market. Vehicular access is equally practical: MacPherson Road and Aljunied Road connect directly into the Pan Island Expressway, giving quick runs to Changi, the city centre, and the western industrial belt without threading through congested residential roads.

The immediate surrounds are functional rather than glamorous — a mix of food courts, hardware suppliers and other light-industrial buildings — but NEX Mall at Serangoon is close enough for banking, F&B and retail errands during the working day, which is a genuine convenience for building occupiers who would otherwise have to drive out for lunch or a bank run.

Location of Lum Kong Building relative to the Tannery Lane industrial estate. Map data: Google Maps, accessed August 2026.

Building & Facilities

As with most B1 buildings of its era, Lum Kong Building is built for function first. Expect a straightforward vertical block with a shared loading and unloading bay at grade, service lifts sized for pallet and trolley traffic, and passenger lifts for staff and visitors. Floor-to-floor heights on the standard levels are typical of late-1990s light-industrial stock — adequate for racking and light assembly work, though not suited to heavy machinery or process industries that need clear heights found in newer purpose-built facilities.

Common facilities are utilitarian: a management office, basic wet and dry risers, a fire command centre, and surface or basement car parking supplemented by lots along the lane itself during peak hours. Individual units are typically handed over as bare shells, meaning incoming tenants and owners generally budget for their own fit-out, including floor loading upgrades, partitioning, and additional power where needed for equipment-heavy operations.

Because the building predates more recent BCA guidelines on green mark provisions and universal accessibility, buyers evaluating the asset for owner-occupation should walk the common areas and lift lobbies in person, and should independently verify current floor loading capacity, power supply capacity, and the state of any recent Addition & Alteration works with the MCST before committing.

Unit Types & Floor Plan Notes

Lum Kong Building offers a mix of strata unit sizes typical of an older B1 block, ranging from compact standalone units suited to a single small operation through to larger combinable lots for growing manufacturers. Layouts are generally rectangular and column-light, which keeps racking and workstation planning straightforward, though actual configurations vary by floor and should be confirmed against the latest strata plan.

Compact Unit

≈700 – 900 sqft

Entry-level footprint suited to a single small workshop, storage-plus-office setup, or a satellite unit for a larger operation based elsewhere.

Mid-Tier Unit

≈1,200 – 1,600 sqft

The most commonly transacted size in the building — enough room for light assembly, a small production line, or storage with a front office area.

Combinable Unit

≈2,000 – 2,800 sqft

Adjoining lots that can be merged subject to MCST and structural approval, useful for occupiers outgrowing a single mid-tier unit.

Whole-Floor Lot

≈4,500 – 5,500 sqft

Occasionally available where an owner consolidates a full level — suited to larger SMEs or investors seeking a single-tenant floor for master leasing.

Ceiling height: ≈3.2m – 3.6m on standard floors
Floor loading: ≈7.5 – 10 kN/sqm typical (verify per unit)
Lift provision: Passenger + service/cargo lift
Handover condition: Bare shell, tenant/owner fit-out required
Power supply: Standard 3-phase, upgrade may be needed for heavier equipment

Investment Case

Like most ageing B1 strata assets, Lum Kong Building’s appeal rests on a trade-off between an attractive entry price and a shortening lease. The case below sets out the main considerations on each side.

What Works

  • Genuine multi-line MRT access (NE, CC, EW) rare for a B1 asset of this vintage.
  • Direct PIE access keeps logistics runs across the island short.
  • Entry quantum remains accessible relative to newer B1 developments nearby.
  • Established occupier base gives the estate a stable, functioning identity rather than sitting half-empty.
  • Amenity-rich surrounds (NEX Mall, food options) support daily operations and hiring.

What to Weigh Carefully

  • ≈30 years remaining on the lease will constrain bank financing tenure and CPF usage over time.
  • Bare-shell, older-generation specifications mean higher fit-out and upgrading costs.
  • Limited on-site car parking relative to modern developments can be a friction point for staff and delivery vehicles.
  • Resale pool narrows as the lease decays, which can widen bid-ask spreads.
  • En-bloc potential exists in theory but is unproven and not a basis for near-term planning.

Who This Suits

Lum Kong Building tends to suit owner-occupiers running light manufacturing, assembly, distribution or F&B production businesses that value transport connectivity over a brand-new specification. It is a reasonable fit for SMEs seeking to convert rent into ownership at a lower quantum than newer B1 stock in the same district, provided they go in with eyes open on the remaining lease and are comfortable budgeting for fit-out. Investors are typically those chasing yield over a shorter five-to-ten-year hold rather than long-term capital appreciation, given the lease trajectory. It is a weaker fit for process-heavy industries needing tall clear heights, heavy floor loading, or extensive dedicated power — those occupiers are better served by purpose-built facilities in Tuas, Woodlands or the newer JTC estates.

Frequently Asked Questions

What can I legally use a unit in Lum Kong Building for?
Units are zoned B1 Light Industrial under URA guidelines, which permits light manufacturing, assembly, processing, warehousing, and ancillary office use tied to an approved industrial activity. Pure retail, F&B dine-in, or residential use are generally not allowed without specific approval, and even ancillary office space is usually capped at a percentage of the unit’s floor area. Some activities involving heavier processes, open flame cooking, or hazardous materials may require additional clearances from SCDF, NEA or other agencies. Buyers and tenants should always verify the specific permitted use for their intended business against URA’s Master Plan and JTC or MCST guidelines before committing, since misuse can result in enforcement action or lease termination.
Can foreigners buy a unit in Lum Kong Building?
Yes. Unlike residential property, industrial units such as those in Lum Kong Building are not restricted under the Residential Property Act, so foreign individuals and foreign-owned companies can generally purchase B1 industrial strata units in Singapore without special approval. There is also no Additional Buyer’s Stamp Duty (ABSD) on industrial property, which is a meaningful difference from residential purchases. That said, foreign buyers should still budget for standard Buyer’s Stamp Duty, legal fees, and financing considerations, and should confirm eligibility with their bank, since loan quantum and tenure for non-resident buyers can differ from those offered to Singapore citizens or permanent residents purchasing the same unit.
Is Seller’s Stamp Duty (SSD) applicable if I resell quickly?
Industrial properties purchased after 12 January 2013 are subject to Seller’s Stamp Duty if sold within three years of purchase, on a tiered scale: 15% within the first year, 10% in the second year, and 5% in the third year, calculated on the higher of the sale price or market value. This is a meaningful cost to factor into any short-hold strategy for a unit in Lum Kong Building. After the three-year mark, SSD no longer applies. Buyers planning a quick flip should model this cost explicitly against expected capital appreciation, since SSD alone can erode most or all of the gross profit on a short-term resale.
What Buyer’s Stamp Duty (BSD) applies to an industrial purchase here?
Buyer’s Stamp Duty for non-residential property, including industrial units like those at Lum Kong Building, is charged on a tiered basis: 1% on the first S$180,000, 2% on the next S$180,000, 3% on the next S$640,000, and 4% on the remainder above S$1 million, applied to the purchase price or market value, whichever is higher. Unlike residential BSD, there is no additional surcharge tier at higher price points for industrial assets. This is calculated automatically at the point of stamping the sale and purchase agreement. Buyers should factor BSD, together with legal and possible agent fees, into their total acquisition cost when comparing this unit against alternatives.
Is GST payable when I buy or rent a unit in Lum Kong Building?
GST treatment depends on the seller or landlord’s registration status and the nature of the transaction. If the seller is a GST-registered entity selling as part of a business, 9% GST may apply to the sale price of the property, in addition to BSD and legal costs — this is separate from residential transactions, which are typically GST-exempt. For rentals, GST is generally chargeable on rent if the landlord is GST-registered. Buyers and tenants should clarify GST status with the seller or landlord upfront, since this materially affects total transaction cost, and should get written confirmation in the offer to purchase or tenancy agreement rather than assuming either way.
How does the remaining lease affect financing for this building?
With an estimated ≈30 years remaining on the lease, banks will typically cap loan tenure so that the loan is fully repaid before the lease expires, often with a further buffer applied. This generally translates to shorter maximum loan tenures than a fresh 30-year or 60-year lease would allow, and loan-to-value ratios may also be more conservative as the lease shortens. CPF usage (for eligible individual buyers) is similarly restricted based on remaining lease relative to the youngest owner’s age. Prospective buyers should get an in-principle approval from their bank early, since financing terms here can differ meaningfully from a newer B1 building with a longer runway.
What rental yield can an investor realistically expect?
Based on the current asking rent range of roughly S$2.20 to S$3.20 psf per month against transacted prices of around S$650 to S$850 psf, gross rental yields for units in Lum Kong Building typically work out to approximately 4% to 5.5% per annum before deducting maintenance, property tax, and any vacancy periods. This sits within the broader range seen across older B1 strata buildings in District 13. Actual achieved yield will vary by unit size, floor, and tenant profile, and investors should stress-test their numbers against a realistic vacancy allowance, since older buildings can see longer void periods between tenancies than newer, better-specified stock.
How does the building’s age affect maintenance and running costs?
At roughly three decades old, Lum Kong Building’s mechanical, electrical and plumbing systems are at a stage where periodic upgrading works — lift modernisation, roof waterproofing, common area rewiring — become more likely, and these are typically funded through the sinking fund via MCST contributions. Buyers should request recent Annual General Meeting minutes and the latest sinking fund statement to understand any planned or recently completed major works, and whether a special levy has been raised or is anticipated. Older buildings are not necessarily poorly maintained, but the probability and cost of near-term capital works is generally higher than in a building completed within the last decade.
What are the odds of en-bloc redevelopment for this site?
En-bloc potential exists in principle for any strata industrial development, particularly one on a well-connected site like Tannery Lane, but it should not be treated as a near-term probability. Successful en-bloc sales require owners representing at least 80% of share value and strata area (for developments over 10 years old) to agree, which is often difficult to achieve in a building with many small individual owners running active businesses. There is no confirmed collective sale process underway at Lum Kong Building as far as public records show. Buyers attracted by redevelopment upside should treat it as a long-shot bonus rather than a core part of their investment thesis.
What parking and loading provisions does the building have?
Lum Kong Building offers a mix of on-site car parking and ground-floor loading and unloading bays typical of a B1 building of its era, supplemented by roadside parking along Tannery Lane during off-peak hours. On-site provision is generally more limited than in newer industrial developments designed to current parking-ratio guidelines, so businesses with frequent delivery traffic or a larger staff headcount driving to work should factor this into their operational planning. Loading bay access can also get congested at peak times given the number of occupiers sharing the same ground-floor entry points. Prospective tenants and buyers should visit during a weekday to observe actual conditions before committing.
What are typical MCST maintenance fees for a unit here?
Maintenance and sinking fund contributions (MCST fees) for a unit in Lum Kong Building typically run at roughly S$0.30 to S$0.45 psf per month, though the exact figure depends on unit share value and the building’s current budget, and should be confirmed directly against the latest MCST accounts before purchase. These fees cover common area upkeep, lift servicing, security, cleaning, and contributions to the sinking fund for larger capital works. Older buildings can see maintenance fees trend upward over time as major systems require replacement. Buyers should ask for the last two to three years of MCST financial statements to judge whether fees have been stable or rising, and why.
How liquid is the resale market for units in this building?
Resale liquidity for Lum Kong Building units is moderate and typical of an older, smaller B1 strata development — transactions occur steadily but not in high volume, and pricing can be sensitive to unit size, floor level, and the state of fit-out. Smaller, more affordable units tend to transact faster than larger combined lots, which have a narrower pool of qualified buyers. As the remaining lease continues to shorten, buyer financing constraints described earlier may further narrow the pool of purchasers over the medium term. Sellers should price realistically against recent comparable transactions and expect a longer marketing period than would be typical for a newer, larger industrial development.
What types of businesses are currently operating in the building?
The building houses a mix of small and mid-sized enterprises typical of an established B1 estate, including electronics and appliance distribution, audio equipment and light manufacturing, food distribution, and general trading and logistics operations, alongside various holding and services companies using ancillary office space. This diversity gives the building a functioning, occupied character rather than depending on any single industry or anchor tenant. Prospective buyers or tenants can walk the common corridors to get a feel for the current occupier mix, and should note that the building directory can shift meaningfully over a few years given the relatively high churn typical of SME-heavy industrial estates.

Disclaimer: This article is prepared for general informational purposes only and does not constitute financial, legal, tax or investment advice. Figures marked with “≈” are estimates based on publicly available information and should be independently verified against the latest URA, IRAS, MCST and JTC records before making any purchase, leasing or financing decision. PropertyReview.sg and its editors accept no liability for decisions made in reliance on this content. All property transactions should be conducted with the assistance of a licensed real estate salesperson and appropriate legal counsel.

© 2026 SG Commercial Property Insights. All rghts reserved.

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