From mass-market condominiums, build-to-order public flats to high-end condominiums, Singaporeans are not afraid to use building in different tiers of the property market. However, a majority of locals are hesitant when to delve into the unknown realm of commercial properties in Singapore.
Surprisingly commercial properties have a potential to give higher yield and are not subject to Additional Buyer’s Stamp Duty (ABSD) as evident in residential properties. If you are new to commercial properties, then this article will give you an appropriate introduction. We shall have a look at retail spaces, chophouses, office spaces and medical suites. Let us have a closer look at individual commercial properties.
Most of the Singaporeans work in an office. Tell them to invest in an office, the very same place they spend quite a substantial part of their life and they will develop cold feet. Regardless of such reactions, statistics show that the trend in investing on office spaces is on the rise, steadily. This comes with the Singapore government effort to decentralize commercial activities from central areas. We have seemed more commercial projects are coming up in estates such as woodlands and Jurong regions. Based on data by Chesterton, about 32% of upcoming office will be strata-title. This refers to individual titles issued to units of apartment s, houses or office jointly developed within a building that shares common facilities.
Similar to residential properties office spaces are also classified into grade A, B, and C office spaces.
Since the development of strata-titles and commercial building in 1970, Singapore has had more than 55 strata-titles retail malls. According to regional research y DTZ, of the 5.5 million sq. Feet of retail space is expected to come on stream from 2014 to 2019, only 10% would be strata-title. This is because developers prefer mall ownership being controlled by one entity, who will, in turn, have control over the retail mix of tenants.
Eating at little India, shopping along Chinatown or having a drink at Duxton Hill, shophouses are a familiar sight despite their rarity. These commercial properties are highly sought after by investors. Shophouses can be used for living or business, or both. Majority of shophouses were constructed between the 1840s and 1960s with the common design being two or three stories built in continuous blocks.
Apart from the private shophouses, there are also HDB shophouses. HDB shophouses are rare and now privately maintained. Due to their rarity, HDB shophouses have higher premiums making them less affordable for investors with a small budget.
Singapore Is projected to reach a population of 6.9 million people by 2030.At this year, a majority of the people will comprise of the aged, meaning higher demand for healthcare needs. The growing affluence from neighboring countries also heightens the market for top quality healthcare. To care the projected demand, Health City Novena has introduced a master plan in the central region and other regions with a strategy to develop medical excellence which is more accessible and provide quality care to Singaporeans.