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If you are worried about the recent cooling measures. Then you can consider investing in commercial properties like offices, shophouses and retail shops.
Following are the reasons why buy commercial properties:-
1) Lower quantum required for commercial properties as compare to residential properties
2) Higher loans (E.g. 70%) can be granted with commercial as compare to residential properties
3) Less impacted by the recent government cooling measures
4) Lesser restrictions on foreign buyers of commercial properties in Singapore
5) There are not many strata offices or retail units put up for sale in the market as big developers do not sell retail units to private owners
6) Relocation of a successful business is minimal due to their business addresses and reputation
7) Once your commercial property purchase is located at the right area, many business buyers will be avaialble
8) If the business owner established a successful business, you will definitely be able to have long term income from your rental yield (Long term tenants)
9) Not many investors into commercial properties yet and are not sure what to look out to purchase yet
10) Commercial properties require current crowd, near MRT station, near to a busy entertainment spot, near to well know tourist attraction or place of interest, frequent visited area, etc
11) Estimated commercial rental income average of 5% (Please inquire if the rental income is it lock-in and also the duration of guaranteed rental income. Most are just 1 year)
12) Recession more risky for commercial properties as business could close down
13) For commercial properties – Dependent on human traffic volumes which all business owners will be looking out for. The more human traffic, the higher the rent.
14) Consider also if your commercial property is it located in a brand new building or a 40-50 years old building. New building will often but not always have larger crowds. It will be better to go onsite to check the building and its surrounding businesses, etc.
15) When considering to buy a shophouse in Singapore. It will be best to first check what type of business can be setup in a shophouse. Shophouses also are currently being sold at higher than valuation price.
16) Industrial properties are another less invested area. Many opportunities but not many buyers. Some of the things to consider when purchasing an industrial property are price, transaction volume (E.g. How many buyers and sellers are interested in the industrial property which you intend to buy), space, lease tenure, loading restrictions, height, road access, services and business nearby and logistics.
Good luck with your commercial properties investments!
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