1. Stamp Duties:

 

• Buyer’s Stamp Duty (BSD):​

  • First $180,000: 1%

  • Next $180,000: 2%

  • Next $640,000: 3%

  • Next $500,000: 4%

  • Above $1.5M: 5%

 

• Seller’s Stamp Duty (SSD): If sold within 3 years of purchase, the rates are:

  • 1 year: 15%

  • 2 years: 10%

  • 3 years: 5%

  • More than 3 years: No SSD

 

• Additional Buyer’s Stamp Duty (ABSD): Not applicable to industrial property purchases.

 

2. Financing and Loan-to-Value (LTV) Ratio:

• LTV Ratio: Financial institutions typically offer loans up to 80% of the property's value, depending on the borrower’s creditworthiness.

• Mortgage Tenure: Maximum loan tenure is usually capped at 30 years for industrial properties.

 

3. Goods and Services Tax (GST):

• Transactions may be subject to GST if the seller is GST-registered. Clarify GST obligations during the purchase process.

 

4. Central Provident Fund (CPF) Usage:

• CPF savings cannot be used for purchasing industrial properties. Buyers must use cash or other financing methods for the down payment.

 

5. Regulatory Compliance:

• Zoning and Usage: Ensure the industrial property is zoned for your intended business. The URA regulates land use, and certain business operations may require approval.

 

6. Tenure of Property:

• Industrial properties in Singapore are freehold or leasehold with 30, 60, or 99-year leases . The lease duration can affect financing options and future resale value.

 

7. Benefits of Purchasing Industrial Property:

• Cost Savings: Potential for long-term savings compared to escalating rental costs.

• Asset Appreciation: Opportunity for capital appreciation depending on market conditions.

• Operational Stability: Ownership ensures greater control over the property, offering stability for long-term business planning.

 

 

Disclaimer: While this guide provides current information, it is important to note that the rates, regulations, and policies mentioned (such as Stamp Duties, Goods and Services Tax, and other financial requirements) are subject to change based on government and regulatory updates. Buyers should verify the latest policies and confirm details with relevant authorities or professionals at the time of purchase to ensure accuracy.