Why Commercial Property in Singapore is Gaining Popularity Among Investors
Singapore has long been recognized as a stable, business-friendly hub in Asia. While residential property continues to attract attention, commercial property in Singapore is fast becoming a top choice among savvy investors — and for good reason.
From shophouses for sale in Singapore to modern offices for rent and high-potential industrial properties, commercial real estate offers a range of options with excellent long-term benefits. Unlike residential properties, commercial assets are not subject to Additional Buyer’s Stamp Duty (ABSD), making them an attractive alternative for both locals and foreigners seeking to diversify their portfolio.
ABSD Exemption: A Big Win for Commercial Investors
One of the main reasons investors are shifting focus to commercial real estate is the freedom from ABSD. In Singapore, ABSD can significantly raise the cost of acquiring residential properties — especially for foreigners and those buying second or third homes. As of recent years, ABSD rates for residential property can go up to 60% for certain groups.
In contrast, purchasing commercial property — such as a shophouse, office, or industrial unit — does not incur ABSD at all. This exemption creates a massive financial advantage, allowing investors to maximize capital deployment and lower entry costs. Whether you’re a business owner or a property investor, the ability to expand your assets without hefty taxes is a compelling reason to consider commercial options.
Strong Demand and Diverse Opportunities
Singapore’s commercial real estate sector is as vibrant as its economy. Despite global uncertainties, demand for office space in prime locations remains strong, especially as multinational companies maintain regional headquarters in the city-state. Flexible workspaces and Grade A offices in the CBD are highly sought-after, creating stable rental yields and long-term appreciation.
Meanwhile, shophouses for sale in Singapore continue to attract attention due to their rarity, freehold status, and cultural charm. These properties are especially popular in areas like Chinatown, Little India, and Kampong Glam, offering excellent potential for both business use and capital gains.
Industrial property for rent, including warehouses and B1/B2 spaces, is also on the rise as e-commerce and logistics sectors expand. With Singapore being a regional logistics hub, industrial properties remain a solid choice for consistent rental income and value appreciation.
Benefits of Commercial Property Singapore vs Residential Property
Aside from ABSD savings, investing in commercial property in Singapore offers several distinct advantages:
- Higher Rental Yields: Commercial properties often provide better rental returns compared to residential units. Tenants like businesses and corporations typically sign longer leases and are more reliable.
- Professional Tenants: Unlike residential tenants, business tenants tend to maintain the property well to protect their professional image and operations.
- Flexible Ownership Rules: Commercial properties can be purchased under personal or company names, and foreigners face fewer restrictions compared to residential property.
- Capital Appreciation Potential: Prime commercial assets — especially heritage shophouses and freehold buildings — have shown strong historical appreciation due to limited supply.
Is Now the Right Time?
With growing interest, rising rental demand, and no ABSD, many investors see now as a good time to explore opportunities in commercial real estate. Whether you’re looking for a shophouse for sale in Singapore, a strategic office for rent, or a high-utility industrial property, there’s no shortage of investment-grade assets to consider.
As always, do your due diligence and work with experienced property consultants who understand the commercial market well. With the right guidance, investing in Singapore’s commercial property can be both profitable and future-proof.
Leave a Reply