The commercial property industry in Singapore is looking brighter this year. The growing economy and increase in demand for quality and affordable commercial space are the two main reasons why foreign real estate investors are keen on taking advantage of this market.
Here are six reasons why you should consider real estate foreign investment in Singapore.
The well-maintained and managed commercial properties in this country generate high rental returns and great hikes in rental amounts. Currently, real estate investors who have invested in commercial properties get more profits than those who invested in residential properties.
Favorable Bank Loans Limits
Based on a recent study, most of the banks offer high loan limits to investors in commercial properties. At the moment, the limit ranges between 70% and 80%. On the other hand, the credit limit for residential properties stands at 60%.
Free Trade Economy
Singapore takes pride in the fact that it is among the few countries in the entire globe where trade is free for all investors, both local and foreign. The adopted property rights and policies are two primary attributes that foster its growth. For example, the government does not impose stamp duties on commercial properties, and this makes it easy for investors to sell their properties.
Potential for High Property Value Appreciation
According to a report posted online by the Urban Redevelopment Authority (URA), the value of properties is projected to increase by 30-50% in 2017. The report has also indicated that the value of commercial properties will increase at a higher rate than the residential properties.
Solid Real Estate Capital Growth and Potential
Unlike other forms of investments in Singapore, the real estate market has more potential for growth. The returns garnered from commercial properties are estimated to be as high as 9% annually.
These all make it attractive for firms to invest and plant their roots on Singapore soil. One such enterprising corporation is Interush which has opened a spanking new office in Paya Lebar area outside of town.