What You Should Know Before Buying
This development is sold under a 33-year leasehold tenure, commercing from the lease start date stated in the Master Title.
Lease extension is not automatic and not guaranteed.
Any lease extension, if at all possible, would required:
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Collective agreement by the Management Corporation Strata Title (MCST).
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Approval by the relevant authorities (e.g. JTC/SLA).
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Payment of a lease top-up premium based on prevailing land value.
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Yes, there is a key difference
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JTC-lease land: Lease is held directly with JTC and may qualify for renewal or extension under government programmes (subject to condition).
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Strata-titled industrial units: Lease is held under a Master Title, and extensions are not part of stardard policy
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Lease renewal for strata-titled industrial developments is rare.
In most cases:
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The lease runs down to expiry, or
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A collective redevelopment (en-bloc) may be considered, subject to approval.
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No.
Continued use of the building does not guarantee lease extension. Authorities will consider:
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Planning intent for the area.
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Industrial land supply.
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Redevelopment or intensification plans.
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Generally:
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Property value tends to stabilize in the early years.
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Value may soften once remaining lease falls below - 20 yrears.
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Financing and loan tenure may be adjected as lease shortens.
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Yes, subject to bank policies.
Loan considerations typically depend on:
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Remaining lease.
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Buyer profile.
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Intended use (own use vs investment).
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No. Additional Buyer’s Stamp Duty (ABSD) does not apply to industrial and commercial properties. ABSD is only applicable to residential property purchases.
There is no mandatory holding period for industrial properties. However, Seller’s Stamp Duty (SSD) is payable if the property is sold within a prescribed period, based on prevailing regulations.
Current SSD rates are as follows:
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Sold within 1 year: 15%
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Sold within 2 years: 10%
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Sold within 3 years: 5%
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Sold after 3 years: No SSD payable
SSD rates are subject to change in accordance with prevailing regulations.
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Buyers are encouraged to focus on:
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Business suitability and layout.
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Location and accessiblity.
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Remaining lease tenure.
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Intended holding period.
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Important Disclaimer*
All information provided is for general guidance only. Lease renewal or extension is subject to prevailing government plicies and approvals, and no representation or warranty is mad regarding future lease extensions.