Commercial Property in Singapore offers lots of investment potential for property investors. Generally speaking, if done correctly, it delivers good rental yield as well as capital appreciation.
Why Invest in Commercial Property
1) High Rental Yield
While rental yield of a commercial property really depends on the location and future potential, but generally speaking, its higher than their residential property counterpart.
For property investors who are looking for rental yield, commercial property is definitely one area that you should look into.
2) Longer Tenancy
Typically, residential tenancy is shorter, may 2 or 2+1 year. Whereas commercial property has a longer tenancy lease term which is typically 3+3 years.
The obvious reason is that it’s a lot more troublesome for businesses to move or shift around than residential tenants. For businesses to shift place, it involves many things like looking for new location, informing all the existing customers about the changes, employees turnover as they find new places to be inconvenience, change of address, and businesses down time.
For all these reasons, commercial property will have a longer tenancy lease and that enable commercial property investor who enjoy more stability and consistency of rental income.
3) No Cooling Measure, yet
As of Jan 2013, Government had introduced at least 7 rounds of cooling measures on residential properties market, in an effort to slow down the rapidly increasing residential property price.
As a result of all the cooling measures, which includes Seller Stamp Duty and Additional Buyer Stamp Duty, investing in residential property have becomes harder and less attractive.
Commercial Property, on the other hand, has not been affected by the cooling measure yet. It has starting to gain traction as an alternative investment option for most property investors as the awareness has raised significantly in the last few years.
4) Shortage of Supply
Market and Investment is affected mainly by supply and demand. If the demands are high and the supplies are in short, prices go up.
This is exactly what happen in commercial properties in Singapore. The rapid increment of population, now at more than 5 million, outpace the increment of commercial property. While the demands are raising so fast due to the inflow of foreigner talents, the capacity of commercial properties are struggling to keep pace.
That represent a massive opportunity! Commercial properties are in great demand, it makes it easy to rent out with high rental yield and easy to sell with capital appreciation.
One of the most exciting new launches in Singapore for commercial property will be MacPherson Mall. Its a mixed development comprising of Hotel and Shopping Mall.
MacPherson Mall is strategically located at the junction of MacPherson Road and Upper Aljunied Road, which is at 401 MacPherson Road. Its design is both iconic as well as futuristic, and is destined to become the new landmark in the vicinity.
As the ONE and ONLY shopping mall in MacPherson area, the lack of supply made MacPherson Mall become highly sought after.
It is expected to serve more than 400, 000 working crowd from Ubi, iPark, Paya Lebar and Tannery, as well as constant stream of hotel guests and residents nearby.
Key Selling Points of Macpherson Mall
Huge Human Traffic: Macpherson Mall is perfectly positioned to serve more than 400, 000 of working crowd from Paya Lebar Commercial and Industrial Hub, IPark, Ubi, and Tannery, as well as residents in the surrounding and constant stream of hotel guests in Macpherson Mall!
lack of Supply: There is no Shopping Mall in the vicinity, there is a severely lacking supply of retali shops, Education and Entertainment, chill out cafe, and restaurants. Macpherson Mall is set to supply all these, plus more! Huge Investment Potential is inevitable.
FREEHOLD, Stunning and futuristic Design, Shopping Mall (86 Retail Units) + Hotel (300 Rooms), 29 Restaurants + 57 Retail Shops
Upcoming MRT: Future Mattar MRT just 5 mins walking distance away. 8 mins walk to Tai Seng MRT (Paya Lebar iPark, and 2 stations away to Paya Lebar MRT interhcange.
Excellent Location: Strategically and prominently located at the junction of Macpherson and Upper Aljunied Road. Its location offers excellent visibility, great exposure, and extremely prominent.
For Commercial Property Investor looking for rental income, it will be an excellent choice.