Kevin Tan
29-03-16, 11:02
http://www.theedgeproperty.com.sg/content/industrial-vacancy-rates-spook-sellers
Industrial vacancy rates spook sellers
By Feily Sofian, Esther Hoon / The Edge Property | March 18, 2016 10:40 AM MYT
Tags: industrialvacancy
Faced with manufacturing gloom and rising vacancy rates, industrial property owners have been eager to offload their units. Amid waning confidence, more sellers could be opting to let go of their industrial properties even if they have to incur losses or seller’s stamp duty. Sellers must pay 15%, 10% and 5% SSD if they sell their properties within one, two and three years, respectively, of purchase. The rule applies to industrial properties bought on or after Jan 12, 2013.
By matching the sales caveats of industrial units with the caveats of their previous transactions, we found that 11 transactions in 4Q2015 were levied with SSD. In comparison, there were only three to four such transactions each quarter in the first three quarters of 2015. The numbers could be understated, as many industrial transactions were not captured in the caveat record.
For the 11 transactions, the highest SSD paid amounted to $290,000. It accrued to a ground-floor unit at The Splendour, a 60-year leasehold factory on Bukit Batok Crescent. Based on caveats published by URA and the Singapore Institute of Surveyors and Valuers, the seller purchased the unit in April 2014 at $2.69 million and sold it in December 2015 for $2.90 million ($335 psf).
http://www.theedgeproperty.com.sg/content/industrial-vacancy-rates-spook-sellers
Industrial vacancy rates spook sellers
By Feily Sofian, Esther Hoon / The Edge Property | March 18, 2016 10:40 AM MYT
Tags: industrialvacancy
Faced with manufacturing gloom and rising vacancy rates, industrial property owners have been eager to offload their units. Amid waning confidence, more sellers could be opting to let go of their industrial properties even if they have to incur losses or seller’s stamp duty. Sellers must pay 15%, 10% and 5% SSD if they sell their properties within one, two and three years, respectively, of purchase. The rule applies to industrial properties bought on or after Jan 12, 2013.
By matching the sales caveats of industrial units with the caveats of their previous transactions, we found that 11 transactions in 4Q2015 were levied with SSD. In comparison, there were only three to four such transactions each quarter in the first three quarters of 2015. The numbers could be understated, as many industrial transactions were not captured in the caveat record.
For the 11 transactions, the highest SSD paid amounted to $290,000. It accrued to a ground-floor unit at The Splendour, a 60-year leasehold factory on Bukit Batok Crescent. Based on caveats published by URA and the Singapore Institute of Surveyors and Valuers, the seller purchased the unit in April 2014 at $2.69 million and sold it in December 2015 for $2.90 million ($335 psf).
http://www.theedgeproperty.com.sg/content/industrial-vacancy-rates-spook-sellers