Well, if the cooling measures is not effective, then it will not be out in the first place.
The latest Seller Stamp Duty levied on the Sale within 3 years of purchase is long overdue. I have met business owners who are lamenting the high cost of owning their units and not to be at the mercy of the landlords. The rumors had been circulating since last year and I am not surprised at this latest curb.
Some investors are still wary of the short tenure of the projects. Generally speaking, industrial tenants tend to be a lesser hassle. If tenants are successful, the chances are that they will not want to move which make renewal a much easier process.
B1 Light Industrial
I feel that there is an oversupply of B1 units in the market. Unless one plan to go against the URA regulation, the type of business that can operate in B1 units are limited. Investors should cast their net elsewhere.
Renting out a unit will need patience and owners must be realistic in their price. It is the tenants’ market now for B1. Resale prices should drop in the next few months for newly completed projects.
B2 General Industrial
Right now, there is as limited supply…for the east side at least. Two projects should be completed in about 2 years and business owners are looking forward to it.
If location is right, a B1 nature business may even want to be located in a B2 area!
Due to the short tenure which will affect the potential buyers in their loan application, owners are advised to hold on to their units and focus on the rental yield. Anything above 5% is pretty good now.
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