Industrial Property Seller Stamp Duty
"How much is the seller stamp duty for industrial properties and how does it affect your investment plan?"
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Based on current regulation, no Seller Stamp Duty (SSD) will be imposed on industrial properties after holding period of 3 years.
Industrial seller stamp duty is as shown below:
HOLDING PERIOD | SSD RATES |
<1 YEAR | 15 |
1-2 YEAR | 10 |
2-3 YEAR | 5 |
>=3 YEARS | 0 |
Therefore, for investor's point of view, industrial properties are for medium to long term investment due to SSD imposed as it greatly lowers the potential returns in the short term. industrial properties are usually has lower price per square foot (PSF) as compared to commercial properties and is exempted from Additional Buyer Stamp Duty (ABSD). Hence, industrial properties may not be for everyone but investors with a limited budget and wish to avoid ABSD may consider industrial properties.
In conclusion, industrial property also has attractive returns in the form of rental yield and capital appreciation but is has less liquidity than commercial properties. Therefore, it may be less popular than commercial property among investor but with its relatively low PSF as compared to commercial property, it may be the right choice for investor with a tight budget!
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