For property investors in Singapore, residential properties are the most probable investment destination simply because it's easier. With increased ABSD on 2nd and subsequent residential properties, investors seek alternatives.
Steps to Invest in a Commercial Property in Singapore
Step 1. Setup your goals
Do you know who exactly you are hoping to lease space to? Defining who the ideal tenant would be can help determine which properties and locations would make sense when searching.
A space that’s great for an F&B establishment will be completely different from one that’s great for doctors.
Step 2. Location, Location, Location!
Like with residential properties, there are 3 important factors that can make or break a commercial property.
Accessibility –how easy is it for customers and potential tenants to get to your location? Being near a MRT station and/or major roads can be very important.
Amenities –what shops, eateries, and banks are near your desired location? Both your tenants and their customers will appreciate being near these facilities.
Foot traffic counts should also be factored into consideration, particularly if your plans include leasing out retail spaces to businesses.
Step 3. Budget and Financing Options
A Commercial Property Singapore ranges from about S$500,000 to upwards of S$8 million for individual buyers. Take note of the property’s size, location and leasehold before making your decision as these will greatly affect the price.
Keep in mind that you cannot use CPF to pay for the down payment so make sure you have the funds or financing ahead of time. DBS provides great deals for commercial property loans with LTV ratios of up to 80% depending on the property. Find out more by contacting us here.
About FactoryDepot
We know how important location is to your business. That's why our warehouses and factories in Singapore are located near major thoroughfares for convenient access to transport links to efficiently move goods to and from your warehouse or factory. At FactoryDepot, we understand the struggles of running a business and we aim to equip you with cost-effective options when it comes to renting a warehouse or factory in Singapore. Choose your required property by consulting us at simon.huangrz@gmail.com

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