Commercial Property

Singapore’s commercial property market presents a compelling opportunity for investors, particularly due to the absence of Additional Buyer’s Stamp Duty (ABSD). This exemption sets it apart from residential property investments, making it a more accessible and potentially lucrative option.

Who Benefits?

This advantage is particularly appealing to:

• Businesses seeking operational space: Companies looking to own their premises gain from long-term stability and potential capital appreciation.
• Investors diversifying their portfolio: Individuals and entities aiming to diversify beyond residential assets find commercial properties a viable alternative.
• Foreign investors: The absence of ABSD levels the playing field, making Singapore’s commercial sector attractive globally.

GST Considerations

While ABSD is not applicable, Goods and Services Tax (GST) is a crucial factor. Generally, the sale of commercial properties is subject to the prevailing GST rate. However, there are scenarios where the transaction might be zero-rated, especially if the property is sold as a Going Concern.

• It is crucial for buyers to carefully evaluate the GST implications and seek professional advice.
• Buyers also need to understand that if they are GST registered, they may be able to claim back the GST paid on the purchase of the commercial property.

Key Advantages

• No ABSD: This significantly reduces upfront costs, enhancing affordability and potential returns.
• Potential for higher rental yields: Commercial properties can generate substantial rental income, depending on location and market conditions.
• Capital appreciation: Singapore’s robust economy and strategic location contribute to long-term property value growth.
• Diversification: Commercial property investment diversifies investment portfolios.

In conclusion, Singapore’s commercial property market offers attractive opportunities, especially with the ABSD exemption. However, it’s vital to consider GST implications and conduct thorough due diligence before making any investment decisions.