Commercial Property Singapore Guide 2021
Commercial Property Guide in Singapore
Things you need to know before the purchase commercial property in Singapore
Type of Commercial Property
Office Space is one of the safest purchase in Singapore, as you know there will always be demand for office space. Finding a tenant is guaranteed as long as the office is priced correctly. One of the top office choice recommended is Crown at Robinson. Because it is priced lower than other New Freehold Office and it have a better corporate image and high ceiling.
Retail is very subjective, as the price is very volatile. Each unit in the same building can be priced very differently. It would be best to get an expert to guide you if you would like to purchase a retail shop.
Shophouse are Rare in Singapore are highly demanded especially Full Commercial Shophouse. As foreigner’s are not eligible to own residential landed property in Singapore, foreigners buy full commercial shophouse to own a piece of land in Singapore.
Commercial Property Stamp Duty
So to simply for the commercial property stamp duty for any property with price above $360,000 we take the purchase price X 3% – $5,400.
Why $5400? Because for the first $180,000 the difference between 1% and 3% is 2%, $180,000 X 2% would be $3,600 and the difference for the next $180,000 the difference between 2% and 3% is 1%, $180,000 X 1% = $1,800. We take $3,600 + $1,800 and we get $5,400. That’s why for any property above $360,000 we just take 3% – $5,400.
Loan for commercial property
For most banks you can loan up to 70% of the property purchase price if you are buying for investment.
For most banks you can loan up to 80% of the property purchase price if you are buying for own use.
Some banks you can loan up to 90% of the property purchase price if you are buying for own use.
Commercial Property Loan Interest rate Singapore
Commercial Property Loan interest rate now is around 1% to 1.5% at the moment.
It is very troublesome to check what is the best rate from the banks 1 by 1 and you may miss out one of the bank.
Contact us at: +65 9379 9993 for the most updated / best commercial property loan interest rate now.
Commercial Property Financing
Commercial Property Financing can be done via bank loan or from a financial institution. You can contact us at: +65 9379 9993 for more information
Commercial Property seller stamp duty
There is no Commercial Property Seller Stamp Duty, you can buy and sell immediately / Flip the property immediately .
Industrial Property Seller Stamp Duty:
15% on the first year
10% on the second year
5% on the third year
Residential Property Seller Stamp Duty:
12% on the first year
8% on the second year
4% on the third year
Commercial Property Tax Singapore:
Commercial and industrial buildings and land are taxed at 10% of the Annual Value. No matter own use or investment, its the same 10% of Annual Value.
Commercial Property Tax Calculator Singapore
Annual Value X Property Tax of 10% = Property Tax Payable
Annual Value of $100,000 X Property Tax of 10% = Property Tax Payable of $10,000
Commercial Property GST
Commercial property GST depends if the seller is GST Registered.
If seller is GST registered company then the buyer would need to pay GST.
If seller is not GST registered company then the buyer would not need to pay GST.
If seller is not GST registered person then the buyer would not need to pay GST.
If seller is GST registered person then the buyer would need to pay GST.
Commercial Property Agent
It is important to have a good Commercial Property Agent. The right agent can help you to safe a lot of money. They can help you to save on the GST and also help you the structure your property portfolio so that you don’t get fine with a property trader tax. The right agent can also get you attractive loan rates or packages that is best for your property purchase. To get a trusted Commercial Property Agent Contact Us: +65 9379 9993.
Commercial Property Down Payment
Commercial Property down payment depends on how much loan you get.
If you get 90% loan your down payment is 10%.
If you get 80% loan your down payment is 20%.
If you get 70% loan your down payment is 30%.
Commercial Property ABSD
Commercial property ABSD is 0%. There is no ABSD for commercial property. ABSD only applies to Residential Property.
Commercial Property Sales and Purchase Procedure
Register a company
Go to https://www.acra.gov.sg/how-to-guides/setting-up-a-local-company to register a company.
Offer to Purchase and Deposit
Get your agent to do the Offer to Purchase and you put Deposit of 1% of purchase price in exchange for Option to Purchase from the Seller.
At the same time pay the Goods and Service Charge (GST 7%) of the 1% deposit
Funds required at this stage 1.07% of the Purchase Price.
Exercise the Option
Within 2 weeks from the Option to Purchase date, go to the Law Firm and Exercise the option.
At the same time pay the amount required to exercise the option (4% of the purchase price)
At the same time pay the Goods and Service Charge (GST 7%) of the 4% purchase price
At the same time the Lawyer will ask for the stamp fee (3% of the purchase price – $5,400)
At the same time pay Lawyer’s fee (Usually $3,000 for typical property, but for higher quantum property the Lawyer’s fee would be higher)
Funds required at this stage = (Purchase Price + GST = 4% X 1.07 = 4.28%) + (Stamp Duty 3% – $5,400) + ( Lawyer’s fee $3000) = 7.28% – $2400
Paying the remaining amount
Pay the remaining amount of 95%
At the same time pay the Goods and Service Charge (GST 7%) of the 95% purchase price
Funds require at this stage = 95% X 1.07 = 101.65%
For assistance Contact Us at +65 9379 9993
Here are some top recommendation:
Commercial Property for sale in Singapore
Commercial Property Investment Choice
The below property are sorted from my top recommendation to the bottom.
Crown at Robinson is top choice because it is extremely rare to get a Freehold office in CBD and it is one of the newest Freehold Building in Singapore. The Price is also very competitive, anything that is Freehold and New in CBD that is below 597sqft is selling between the price range of $4000psf to $7000psf. In Crown at Robinson you are able to get bare unit at $3500psf and Fitted unit $3600psf.
Commercial Property Hunter
Let us know your requirements and we will help you find it. Contact Us at +65 9379 9993