Commercial and Industrial Property in Singapore
Commercial properties and Industrial properties are consist of buildings
or land specially for generating profit, either from capital gains or rental income.
Commercial properties and Industrial properties are everywhere; providing
businesses with amenities as well as facilities. Such properties are essential contribution
for businesses to go on their daily operations.
The Singapore government has recently announced a further round of cooling measures
on properties in Singapore. This is applicable for both commercial property and industrial
property.
The ultimate reason that compliments the latest announcement was to balance the
highly demanded Singapore’s property market which was foreseen that if the prices
of the properties in Singapore remained stable like before would slowdown the economy.
Although the latest round of cooling measures was implemented primarily on the residential
properties, the regulations affecting industrial properties which was introduced
for the first time has definitely made many investors think twice on investing in
industrial properties as well as commercial properties.
In order to dismiss the early conclusion on the prices as well as its effect on
the business costs as an overall, the new measures include a Seller’s Stamp Duty
(SSD) on industrial properties and land properties with certain criteria
met.
The increasing land costs means prices of the properties will remain high despite
seeing a slow growth. Investors sourcing for property that cost lesser than commercial
property or industrial property and could afford to run businesses
with such property would be enticed.
It is foreseeable that investors will look into other segments that could profit
them in the near run. However, they will still weigh the advantages of buying commercial
property or industrial property depending on the business they are
establishing.