Top Four Best Commercial Property For Sale Singapore
Updated December 2020
Many potential local and foreign buyers have approached us on which property investments are the best for this new norm of COVID Pandemic. While there are many good residential properties for investment, many are keen to explore the commercial properties available for sale, directly from the developers. Commercial properties are known for higher rental yield and all would want to avoid paying the Additional Buyer Stamp Duty (for residential only).
Below the listing are the top five reasons why you should consider commercial properties for investment in Singapore.
Without much ado, the four best current commercial property investments, as of December 2020, are as follows:
(Freehold Office Units)
City Fringe Office Space in Singapore
The COVID-19 is changing the landscape of the demand of office space in Singapore. With the new norm of having to take turns to work from home versus in the office, it becomes more practical for many SMEs and freelancers to operate at the City Fringe.
The Centrium Square located outside the ERP zone, with impressive lobby and carpark supported by the comprehensive range of amenities is an ideal place for work. It is newly completed, that means everything including the sink and wirings are brand new. Added to its attractiveness, the tenure is FREEHOLD. Do note that very limited units are left.
Location: Serangon Road
Developer: Tong Eng Group
- FREEHOLD (for all generations to come)
- Located at City fringe within 1-minute walk to Farrer Park MRT and City Square Mall (outside ERP Zone)
- Easy access to major transport networks and expressways
- Mixed development with 143 Offices, 49 Retail Shops, and 39 Medical Suites
- The ideal choice for business expansions, new setup, relocation, or investment
- Units are column-free with 4.9m ceiling height
(Freehold Industrial B1 - Light & Clean Industries, Limited Units)
High Spec Industrial Space in Singapore
Demand for high-spec industrial space in Singapore is going up owing to their scarcity and large pools of interested buyers. Some businesses may consider relocating from office to high-specs industrial space as part of cost restructuring measures.
With only 30 year leasehold tenure for new industrial lands, FREEHOLD industrial units as a more stable assets class and rare would certainly be extra attractive.
Novelty Techpoint, FREEHOLD B1 industrial building, has recently REDUCED their prices SIGNIFICANTLY to as low as strata psf of S$570. This is a great opportunity for investment.
Location: New Industrial Road
Developer: Novelty Group (known for quality and exquisite furnishings)
- FREEHOLD Industrial Building located off Upper Paya Lebar Road
- Full condominium like facilities for business owners and staff
- Novelty Techpoint is 8 minutes walk to Bartley MRT station
- 1st in history with Dual key concept in Industrial building
- Well-connected via Kallang Paya Lebar Expressway (KPE) and Pan Island Expressway (PIE)
- Accessible to the various type of conveniences and a Short drive away to the upcoming Paya Lebar Commercial Hub
- Property is completed, ready for immediate occupation
Plus at 20 Cecil Street
(Luxurious Grade-A Office Units)
Grade A Office Space in Singapore
The financial district of almost every city lies in the Central Business District (CBD). In Singapore, a Grade A office space would enable companies to enjoy the tip top status, image and positioning on global basis, maintaining the morale of staff, attract the best staff and impress clients immensely. 20 Cecil Street presents these.
By the way, do you know that you are not able to get a Strata titled Grade A office space in Singapore, because around 96% of Grade A office units are not available for sale? Today, the new release of units at 20 Cecil Street could be your little window of opportunity for you to invest in CBD Singapore.
Location: Cecil Street
Seller: CapitaLand Fund Management
- Located in the crème de la crème location at Downtown Singapore Business Financial District 1
- Distinctively majestic like a titan of glass and steel
- Individual air-conditioning units, great for companies which operate outside office hours
- Impressive drop off area and lobby with stringent security
- Around 26-steps from Raffles Place MRT Station
- In the centre of Downtown Masterplan 2019 enhancements, bringing higher value
- Only 56 Strata Office Spaces for Sale (some are vacant, some are tenanted)
(Industrial B2 - Food Factory)
Food Industry in Singapore
According to Singapore Food Agency, COVID-19 amplify Singapore's vulnerability to disruptions in global chains, as over 90% of our food supply is imported. With the focus on securing food supply, ensuring safe food, forging strategic international engagements and excellence.
The food industry has to change to respond. Food factory is perhaps the way to improve on our quality of food for local and international consumption. By the way, do you know that there is a shortage of central kitchens, more so with the COVID-19 pandemic situation?
Location: Pandan Loop
Developer: Chui Teng (known for quality and detail planning)
Exquisite 10 storey Ramp Up Food Factory, ready for central kitchen, cold storage and food production
CT FoodChain is purposefully designed with High Specifications for Food Factory such as the floor is 7.5 cm lower for easier washing and the exhaust is outside the unit
Located within Pandan Food Zone with many food suppliers
It has great connectivity to various expressways and the future Greater Southern Waterfront
The layout of the unit is highly functional with a high ceiling height
Under construction, estimated completion in September 2023
Top 5 Reasons to Consider Commercial Properties in Singapore
1. Singapore is a great place for investment.
The world is in a constant state of conflict and there is much chaos in major economies. In Singapore, the government has been tweaking the properties cooling measures to ensure there is no property bubble and the increase in property prices has been steady. Investors have been enjoying a fairly good return on investment.
Some major factors to consider investment in Singapore properties include:
- The Singapore Dollar is one of the only four currencies that appreciate against the US Dollar.
- The country continually attracts many notable high net worth executives,
- it has low political risks
- Mortgage rates are attractively low
- It is well known to be a safe haven for assets
- The country has been handing the COVID pandemic very well and the government used close to S$100 billion from its reserve to fund Covid-19 support packages
2. Avoidance of Residential Property Taxes
Savvy investors know that one of the best investment is to get a Property. One of the most notorious Cooling Measures is the implementation of Additional Seller Stamp Duty (ABSD) which applies to the following group of buyers for residential properties:
- Singaporeans: second home property at 12%; third and subsequent residential property purchases at 15%
- Singapore Permanent Residents (PRs): The first purchase will be 5% while second and subsequent purchases will be 15%
- For foreigners: a flat rate of 20% for any residential property purchase
- For entities (companies or associations): 25% ABSD for every residential property
Thus to avoid ABSD, many investors are looking into commercial property investment which does not have ABSD.
3. Future Tenure of Industrial Land
In 2012, The Ministry of Trade and Industry (MTI) in an effort to make the industrial property more affordable, announced that more sites with shorter tenure and smaller sites will be released. As a result, the Industrial Government Land Sales (IGLS) is capping the maximum tenure to 30 years, instead of 60-year lease previously.
The five best investments mentioned above are above 30-year lease. In fact, 2 of the recommended commercial properties are FREEHOLD, a tenure which is rarer.
4. Rare Gems Among The Commercial Properties
The supply of some types of commercial properties available for sale to investors is indeed low. There are 3 instances:
- FREEHOLD TENURE. Freehold land in Singapore very limited and it is getting scared. In fact, freehold land open to foreigners’ purchase is indeed low on a global basis. Two of the recommended properties which have freehold tenures are Centrium Square and Novelty Techpoint
- GRADE A OFFICE UNITS. While there are no international ratings for grading office building, many investors recognized certain buildings to be obviously Grade A. Factors such as impressive secured lobby and foyer, the touch and feel and high-quality finishings are just some factors. Getting a Grade A Office Space in the Downtown Financial Hub of Singapore is difficult. Today, the opportunity is opened to investors at Plus at 20 Cecil Street
- FOOD FACTORY. There are many restrictions in massive food production in Singapore and food factories can only be found in Food Zones. For those who understand or can relate to the food business, the CT FoodChain food factory would be an ideal choice.
5. Cost of Land, Materials and Labour Going Up
Looking at the trend of land prices, the next high cost is always higher than the previous land cost. With land scarce in Singapore, this cannot be avoided. At the same time, the government has been tweaking the property cooling measure to ensure that there is no property bubble and has been slowing down the rate of increase.
With the COVID situation, the cost of materials and labor are threatening to go up rapidly. In the near future, developers would have to increase the prices of properties in order to continue to be in the business.
There are some star buys in each of the recommended properties, do contact us to catch them.
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