About AsianPrime Commercial
Your Singapore Commercial Property Partner.
Boutique Singapore commercial real estate brokerage covering office, industrial, retail, food and beverage, shophouse, and mixed-use assets. Decades of experience, data-driven decisions, bespoke service.
What We Cover
Singapore Commercial Property Types
Commercial property in Singapore covers a broader range of asset classes than most buyers expect. Below is an overview of the main types we work with.
| Type of Commercial Property | Examples |
|---|---|
| Retail | Shopping malls, pet shops, gyms, restaurants, bars, shophouses, HDB shophouses |
| Industrial and Commercial | B1 (offices, warehouses), B2 (factories) |
| Hotel | Hotels, hostels |
Foreign Ownership
Can Foreigners Buy Commercial Properties in Singapore?
While there are restrictions for foreigners when it comes to buying residential properties (generally, foreigners can only buy non-landed private homes and landed properties in Sentosa Cove), there are no such restrictions for commercial property in Singapore.
In fact, according to the Residential Property Act, foreigners can buy commercial properties in Singapore such as:
- Shophouses (for commercial use)
- Industrial and commercial properties
- Hotels (registered under the provisions of the Hotels Act)
In other words, foreigners have the same privileges as locals for commercial property purchases in Singapore.
For locals, there are no income caps or eligibility restrictions. However, buying a commercial property is quite different from a residential property as there are several key considerations to take note of.
Due Diligence
Things to Consider Before Buying
Singapore offers a range of commercial properties including B1 industrial buildings, retail shops, offices, and restaurants. Each type carries different costs, traits, and risks. Heritage shophouses are particularly prized due to government conservation, limited supply, and central locations with lower rents, attracting startups and small businesses.
Commercial properties are zoned under the URA Master Plan. Depending on the type and current use, you may need URA planning permission to change usage. For instance, converting a retail shop into a commercial school requires adherence to URA guidelines or formal approval.
Location affects the type of property and lease tenure. Industrial areas like Woodlands or Punggol often have 60-year leases. Properties near MRT stations and dense residential areas may perform well, but redevelopment or en-bloc activity could impact traffic and business.
Costs and Stamp Duty
Costs You Will Need to Consider
Additional Buyer Stamp Duty (ABSD). ABSD is not payable on commercial property purchases, even if you already own a residential property.
Seller Stamp Duty (SSD). SSD is generally payable only on industrial properties, depending on the holding period.
Goods and Services Tax (GST). Commercial property purchases attract the prevailing GST when the seller is GST-registered. GST cannot be paid using CPF or bank loan proceeds, so set aside cash for this amount.
Financing. Commercial property loans typically have a maximum loan-to-value of 70 to 80 percent and shorter tenures than residential loans. CPF cannot be used for commercial property.
Frequently Asked Questions
Singapore Commercial Property, Answered.
Commercial property refers to non-residential real estate used for business purposes. In Singapore, this includes office, retail, food and beverage, shophouses, industrial and warehouse, and hotel and serviced apartments. All commercial property in Singapore is regulated by URA zoning.
URA zoning categories for commercial and industrial use include: Commercial (office, retail, food and beverage, hotel); Commercial and Residential (mixed use); Business 1 or B1 (clean and light industrial); Business 2 or B2 (general industrial with heavier use allowed); Business Park (high-tech, research and development, non-pollutive); and White Site (flexible use allowed).
Office buildings in Singapore are tiered by age, location and specifications. Grade A buildings are premium CBD assets in Marina Bay, Raffles Place, and Tanjong Pagar with high floor-to-ceiling heights, large floorplates, and advanced building services. Grade B refers to mid-tier buildings with good locations but older specifications. Grade C buildings are older, smaller, or in secondary locations.
Both freehold and leasehold commercial properties exist in Singapore. Freehold means perpetual ownership with no expiry, typically commanding higher prices. Leasehold tenures commonly range from 30 to 99 years for offices and shophouses, and 30 to 60 years for industrial properties on JTC land.
A shophouse is a vernacular building type from the 19th and early 20th century, typically two to four storeys, built in continuous rows along the street. Many shophouses in conservation areas such as Joo Chiat, Tanjong Pagar, and Chinatown are gazetted by URA, with strict facade preservation rules. Shophouses can be zoned commercial or mixed use.
Yes, foreigners can buy shophouses that are zoned 100 percent commercial without needing approval. Shophouses zoned mixed commercial and residential require Land Dealings Approval Unit consent for the residential portion.
B1 is clean and light industrial use such as offices, warehouses, light manufacturing, and food production. B2 allows heavier industrial activity including factories with greater pollution potential. B1 buildings are commonly found in business parks, while B2 is concentrated in dedicated industrial estates.
JTC Corporation is the government industrial landlord. JTC leases industrial land directly to end users with conditions on use, anchor tenant requirements, and minimum operational thresholds. JTC leases are typically 30 plus 30 years, and assignment or sub-letting requires JTC approval.
Yes. Foreigners, both individuals and entities, can freely purchase commercial property including office, retail, industrial (B1 and B2), fully commercial shophouses, and hotel properties without needing approval from the Land Dealings Approval Unit.
No. Additional Buyer Stamp Duty (ABSD) applies only to residential property. Buying fully commercial property such as office, retail, industrial, or shophouses zoned 100 percent commercial attracts only regular Buyer Stamp Duty (BSD) with no citizenship-based surcharge.
Buyers of commercial property pay BSD only (no ABSD). Tiered rates: First S$180,000 at 1 percent. Next S$180,000 at 2 percent. Next S$640,000 at 3 percent. Next S$500,000 at 4 percent. Next S$1.5 million at 5 percent. Above S$3 million at 5 percent (commercial cap, residential goes to 6 percent).
Yes. Commercial property transactions are subject to GST (currently 9 percent from 2024) when the seller is GST-registered. GST cannot be paid using CPF or bank loan proceeds, so set aside cash for this amount. GST may also be chargeable on movable furniture and fittings included in the transaction.
Commercial property loans are capped at 70 to 80 percent loan-to-value, depending on the lender and property type. Loan tenures are typically shorter than residential, often 25 to 30 years maximum. Interest rates and pricing are also higher than residential mortgages.
No. CPF savings cannot be used to fund the purchase, stamp duty, or monthly mortgage of a commercial property. The full down payment, stamp duty, GST, and monthly servicing must come from cash or other liquid sources.
Commercial property is more nuanced than residential. URA zoning, JTC restrictions, lease tenure, planning permission for change of use, GST treatment, and financing structures all require specialist knowledge. AsianPrime Commercial provides clear market insights, financial analysis, and practical guidance every step of the way.
Speak to a Commercial Property Specialist.
Whether you are buying, selling, leasing, or investing, we provide clear market insights, financial analysis, and practical guidance every step of the way.