Rise in building vacancy signals risky year ahead for the non-residential property

[SBR]

With the expected economic slowdown, it seems that persistent falls in building vacancy is a certainty than a possibility, warned an expert.

http://sbr.com.sg/residential-proper...esidential-pro

[devilplate]

interesting to noe tat industrial/office vacancy rate so high

residential 7%+ cud be partly due to some keeping as 2nd or 3rd holiday home and not renting out? less likely for anyone to keep another office/industrial space as 'spare' rite?

scary stats.....how how? faster crash deeper and earlier.....hehehehe

[radha08]

wait till mr b hears this....

[teddybear]

Crash for industry/office/commercial only right?
I already warned previously not to touch office & commercial properties.

interesting to noe tat industrial/office vacancy rate so high

residential 7%+ cud be partly due to some keeping as 2nd or 3rd holiday home and not renting out? less likely for anyone to keep another office/industrial space as 'spare' rite?

scary stats.....how how? faster crash deeper and earlier.....hehehehe

[rattydrama]

I still remember those industrial / warehouse building built by JTC did not have any takers after SARS. The banner stated rent in a minute, just log in to their webpage, and can pick and choose.
Those were the days in 2004/5... No one mention about buying industrial property at all. Scary.

[irisng]

One of the agents asked me to invest in commercial ppty instead of residential ppty because he said that there are too many residential ppty in the market already, but I still prefer residential ppty. At least, if I feel like changing my current living environment, I still have another ppty to consider or I can also leave it for my children when we are not "around".

[teddybear]

Singapore office property losing appeal: DTZ
04:46 AM Nov 24, 2011
by Wong Siew Ying
SINGAPORE - Singapore's office property market is losing its appeal, according to real estate firm DTZ.
DTZ says demand for office space has declined, and the sector is now considered "cold", which it defines as property that is more than 5 per cent overpriced, with potential yield below expectations.
"Singapore has traditionally been a volatile market, and our rental outlook has been impacted by the global slowdown, resulting in lower expected returns over the next five years," DTZ said in a statement.
It also lowered its forecast for rental growth in industrial property to 3.1 per cent over the next five years.
"With key export markets in turmoil, the downside risks facing Asia-Pacific industrial remain significant. Trading hubs such as Singapore and Taipei are at particular risk from the likelihood of another recession," DTZ said.
For all grades of property, DTZ's Fair Value Index, which offers insight into the relative attractiveness of current pricing in commercial property markets, slumped by 17 per cent to 58 points in the third quarter from the previous three months.
The score remains above 50, indicating that Asia Pacific markets are holding up, but the outlook has become more challenging, with fewer attractive opportunities in Asia Pacific, it said.
While the index score has fallen, DTZ says that the majority of markets in Asia Pacific still offer excellent prospects and that investors taking a medium- to long-term view can access several high yielding and high growth markets at a discount, relative to pricing elsewhere.
URL http://www.todayonline.com/Business/...ng-appeal--DTZ
Copyright 2011 MediaCorp Pte Ltd | All Rights Reserved

With the expected economic slowdown, it seems that persistent falls in building vacancy is a certainty than a possibility, warned an expert.

http://sbr.com.sg/residential-proper...esidential-pro

[ikan bilis]

industrial is a big bubble lah!... it was about 150psf in 2006 (e.g. frontier in ubi)... now 2011 all 600+psf (trivex, oxley, ubi1 & etc)... 600+psf is similar to some 10yr old ec... somemore industrial all 60yr only... i bought 1 crap MM industrial at $150K for fun, now people asking $460-490K.... hope mr kbw impose SSD and wipe out all speculators...

[sh]

industrial is a big bubble lah!... it was about 150psf in 2006 (e.g. frontier in ubi)... now 2011 all 600+psf (trivex, oxley, ubi1 & etc)... 600+psf is similar to some 10yr old ec... somemore industrial all 60yr only... i bought 1 crap MM industrial at $150K for fun, now people asking $460-490K.... hope mr kbw impose SSD and wipe out all speculators...

not bad leh... 3 x profit. But have to pay GST for commercial/industrial properties right? more effective than SSD.... pay 7% upfront irregardless....

[ikan bilis]

not bad leh... 3 x profit. But have to pay GST for commercial/industrial properties right?

yah kena GST... but may be you could sell at 3.5% higher to someone buying under personal name (split the 7% GST)...

Note:
- if you are buying under GST registered company name, or you yourself is GST registered, you can claim back/offset the GST on property purchase
- however, if you buy it under non-GST registered personal name, you will not have to charge your tenant 7% GST on the rent. (i still think this is better,... don't help the govt to collect more tax)

[rattydrama]

industrial is a big bubble lah!... it was about 150psf in 2006 (e.g. frontier in ubi)... now 2011 all 600+psf (trivex, oxley, ubi1 & etc)... 600+psf is similar to some 10yr old ec... somemore industrial all 60yr only... i bought 1 crap MM industrial at $150K for fun, now people asking $460-490K.... hope mr kbw impose SSD and wipe out all speculators...

goodies for you!! this is also due to the fact that gov impose SSD on residential thats why commercial ppty shot up. Also few times in ST big big articles telling readers about good deals in commerical ppty vs residential ppty.

I think oversupply in commercial property as it is not easy to do business in Singapore! Monopoly..

[sh]

yah kena GST... but may be you could sell at 3.5% higher to someone buying under personal name (split the 7% GST)...

Note:
- if you are buying under GST registered company name, or you yourself is GST registered, you can claim back/offset the GST on property purchase
- however, if you buy it under non-GST registered personal name, you will not have to charge your tenant 7% GST on the rent. (i still think this is better,... don't help the govt to collect more tax)

Hmmm.... interesting.... too lay-chay to set up company to get GST rebate....

But able to exempt tenant from GST for rental. ie. can charge 7% (or slightly less) more than a similar GST registered landlord..... hmmm.... might just get the 7% GST back in the long run.... never thought about it that way....

[sh]

goodies for you!! this is also due to the fact that gov impose SSD on residential thats why commercial ppty shot up. Also few times in ST big big articles telling readers about good deals in commerical ppty vs residential ppty.

I think oversupply in commercial property as it is not easy to do business in Singapore! Monopoly..

Another reason is the 60% LTV doesn't apply....

beginning to look more promising....

Itchy fingers at work again....

[ysyap]

Most commercial spaces have higher rental rates than residential...

[ikan bilis]

Hmmm.... interesting.... too lay-chay to set up company to get GST rebate....

But able to exempt tenant from GST for rental. ie. can charge 7% (or slightly less) more than a similar GST registered landlord..... hmmm.... might just get the 7% GST back in the long run.... never thought about it that way....

if your property is big, buy under GST registered name... tenant likely GST registered...
if your property is small, consume that GST on property purchase... rent GST 7%x12=84%,.. which is close to 1-month rent after renting for a year...

[rattydrama]

Another reason is the 60% LTV doesn't apply....

beginning to look more promising....

Itchy fingers at work again....

haha on buying spree? wait lah... I am waiting. hand itchy but like what MR B say might get better deals next year..

[sh]

haha on buying spree? wait lah... I am waiting. hand itchy but like what MR B say might get better deals next year..

yes... facing withdrawal symptoms now .....

[rattydrama]

Most commercial spaces have higher rental rates than residential...

i think commerical is hit and run type of investment. down market no one want to rent from you, the rent is dirt cheap. if your tenant is successful in his business, he will buy his own some day.

[ikan bilis]

you guys fingers itchy ??!... go check sgp reits first... all like molten ice-cream liow...

[sh]

think of it as a type of diversification.... instead of putting all the eggs in the residential market...