Buy Comercial Property in Singapore
Understanding Buying Commercial Property
Investing in commercial property in Singapore can be a lucrative opportunity, whether for business operations or rental income. The market offers various options, including office spaces, retail units, industrial properties, and shophouses. Understanding the regulations, financing, and rental potential is crucial for making an informed decision.
Eligibility Criteria
Before purchasing commercial property in Singapore, buyers must meet specific eligibility requirements:
- Foreign Ownership: Foreigners can generally buy most types of commercial properties without restrictions, except for specific landed commercial properties.
- Business Entity: Some commercial properties require ownership under a company rather than an individual.
- Usage Compliance: Ensure the property aligns with zoning laws and intended business activities.
Financial Planning
Proper financial planning is key to a successful purchase:
- Down Payment: Unlike residential properties, commercial properties require a higher down payment (usually 20-30% of the property’s price).
- Loan-to-Value (LTV) Ratio: Financial institutions in Singapore typically offer loans with an LTV ratio of up to 80%, depending on the buyer’s financial profile.
- Additional Costs: Factor in legal fees, stamp duties (Buyer’s Stamp Duty applies to commercial properties), maintenance, and renovation costs.
Do you need help to buy Commercial Property in Singapore?
At Haohaoguo Realty, we are committed to ensuring a seamless and hassle-free experience when purchasing commercial property in Singapore. Whether you’re a business owner seeking the ideal space, an investor exploring high-yield opportunities, or an entrepreneur expanding operations, our knowledgeable team is here to offer expert guidance and tailored support at every stage of the journey.
Expert Guidance
Personalized Assistance
Seamless Process
Comprehensive Support
The Buying Process
Purchasing commercial property in Singapore involves several key steps:
Define Your Objectives: Determine the type, location, and purpose of the property.
Budgeting & Financing: Assess your financial capability and explore loan options.
Property Search & Shortlisting: Identify suitable properties based on business needs or investment potential.
Due Diligence: Verify ownership details, zoning regulations, and legal compliance.
Offer & Negotiation: Submit a Letter of Intent (LOI) and negotiate terms with the seller.
Secure Financing & Agreement Signing: Obtain loan approval and sign the Sale & Purchase Agreement (S&P).
Completion & Handover: Settle payments, complete legal documentation, and take possession of the property.
Guidance related to Commercial Property Purchase in Singapore
Can a company buy commercial property?
Yes, companies, both local and foreign, can purchase commercial properties in Singapore. Many businesses acquire commercial real estate for operational use or investment purposes, and corporate ownership can provide advantages in terms of asset management and financial structuring.
Can foreigners buy commercial property in Singapore?
Yes, foreigners can purchase most commercial properties in Singapore without restrictions, making it an attractive investment option for international buyers looking for business or rental opportunities.
FAQ
Yes, BSD applies to commercial property purchases, but Additional Buyer’s Stamp Duty (ABSD) does not.
Options include office spaces, retail units, shophouses, and industrial properties
Banks typically offer loans covering up to 80% of the property value, depending on eligibility.
Location, property type, rental yield, zoning regulations, and future development plans are crucial factors to evaluate before purchasing.
No, commercial properties cannot be converted into residential use unless approved by the relevant authorities. Zoning regulations must be strictly followed.
If financing is not secured, you may lose your deposit and face legal consequences. It is advisable to obtain in-principle loan approval before committing.