LED by rising rents and limited supply in the near-term, investment activities are expected to hold up for office and retail space. The absence of additional buyer’s stamp duty (ABSD) and seller’s stamp duty (SSD) in the commercial space is also making this segment more appealing to investors.
Knight Frank executive director Mary Sai noted that the Singapore retail and office markets are among top picks in Asia for foreign investors, who face heftier ABSD than locals in the residential market.
“Robust economic growth, stable government, low unemployment, strength of Singapore dollars, are some compelling pull factors for foreign investors in our commercial properties,” she said at the National Real Estate Congress yesterday.
“Another reason why people move over to commercial property is because the absolute sum of capital to be paid is affordable,” Ms Sai added, citing the example of Alexandra Central, which had 43 per cent of transactions below S$1 million. The project that was launched in January last year had 98.3 per cent of strata-titled retail space sold out within one day.