Industrial property sales
Industrial property sales
Pros and Cons of Industrial Property
Procs: No Additional Buyer Stamp Duty (ABSD), Foreigners Eligible, Can buy together with your friends and family, Can set up Goods and Services Tax (GST) registered Company to claim back GST, usually lower price and higher rental yield for shorter leasehold property. Cons: There is Seller Stamp Duty (SSD) (15% within 1st year, 10% within 2nd year, 5% within 3rd year).
Business 1 Industrial (B1 Industrial)
B1 Industrial are typically used for Warehouses, IT, Tech, Research & Development, Call Centre, Video Production, Core Media, Storage + Display (similar to showroom), Backend Technical, Clinical, Food Industry (Packing), Â Industrial Training, perfect for businesses that need a blend of professional and storage space.
Space 18: Brand New Industrial in Central Location
Business 2 Industrial (B2 Industrial)
B2 Industrial are more suitable for heavier industries like manufacturing plants, factories and ramp up factories
Food Factory
One of the top choices for investment for Industrial Property because there is High Demand and Low Supply of Food Factory. Singapore Government intent to increase self produced food supply from 10% (year 2024) to 30% (2030), this will increase the demand for food factory greatly.
Some food factory are
CT Foodnex, Highest Specification among these food factories, the only food factory among new food factories that allow 40 footer container truck access. Have higher ceiling and power too.
Food Vision at Mandai, Slightly lower price but lower specification
Smart Food at Mandai, Slightly lower price then Food Vision but lowest specification
Another good thing about Food Factory is you can convert the unit to cloud kitchen(kitchen for the purpose of preparing food for delivery, example cake bakery or anything in Food panda & Grab), assuming $3000 per unit of cloud kitchen for 300sqft (10psf), you can possibly create 5 units of cloud kitchen inside 1 food factory unit. that’s like 15k a month rental X 12 months a year = $180k per year. For a $2.5m + $300k renovation = $2.8m property that’s at 6.4% yield That’s extremely high rental yield for a Freehold Property (usually 2+% yield for Freehold).
6 Financial Considerations When Buying a Industrial Property in Singapore
Thinking about buying a industrial property in Singapore? We’ve compiled a list of financial considerations for you to make the right decisions. In this section we’ll dive into the seven key aspects that’s important to the buying process.
1. Property Tax
Industrial properties are subject to a property tax rate of 10% of the annual value.
2. Buyer’s Stamp Duty (BSD)
BSD is mandatory for all property purchases. Here’s a breakdown of the rates for residential and industrial properties.
| Purchase price or market value of property | BSD for residential properties | BSD for non-residential properties |
| First $180,000 | 1% | 1% |
| Next $180,000 | 2% | 2% |
| Next $640,000 | 3% | 3% |
| Next $500,000 | 4% | 4% |
| Next $1,500,000 | 5% | 5% |
| Remaining amount | 6% |
3. Total Debt Servicing Ratio (TDSR)
Although the Additional Buyer’s Stamp Duty (ABSD) does not apply to industrial properties, TDSR limits monthly debt repayments to 55% of your income, influencing your mortgage and property choice for buyers purchasing under personal name. For buyers buying under operating company’s name, the bank will loan base on your company’s financial records.
4. Seller Stamp Duty (SSD)
SSD applies specifically to industrial properties
| Date of purchase / acquisition or date of change of zoning / use | Holding period | SSD rate (on the actual price or market value, whichever is higher) |
| On or after 12 Jan 2013 | Up to 1 year | 15% |
| Between 1 – 2 years | 10% | |
| Between 2 – 3 years | 5% | |
| More than 3 years | No SSD payable |
5. Goods and Services Tax (GST)
Industrial properties are also subject to a 9% (year 2024) and 10% (year 2025) GST charge, which cannot be financed through CPF or bank loans. GST applies to furniture and fittings within the property as well. You can claim back your GST if you bought the property using GST registered company.
6. Bank Loan Amount
Loan to value
Typically you eligible are borrow up to 70% for investment and 80% for own use but some banks allow you to stretch another 10% (subject to approval)
Loan tenures
Loan tenures (capped at 30 years or up to age 75 year old).
For property with short lease remaining (usually industrial property):
For property tenure that starts with 30 years lease hold = balance lease – 5 year = loan tenure, example original lease was 30 years and now its left with 15 years = 15 years – 5 years = 10 years loan tenure.
For property tenure that starts with more than 30 years = balance lease – 10 years = loan tenure, example original lease was 60 years and now its left with 20 years = 20 years remaining years – 10 years = 10 years loan tenure.
Getting longer loan tenure
There are way to increase your loan duration if you are getting less than 30 years loan due to the cap at age 75 Whatsapp Vincent:Â 93799993Â to help you increase the loan tenure, Vincent can also help increase your loan up to 150% Loan to Value.
Take Residential Loan or Industrial loan First?
Did you know for investment holding company’s loan is not reflected in your CBS record? Meaning it would be better to take a Industrial loan first. Which also mean you can own multiple Industrial property if you know the right way. You can Whatsapp Vincent:Â 93799993 if you like to find out more.
