Find out why it is necessary.
According to Knight Frank, with effect starting last 12 January 2013, the Government had imposed an unprecedented SSD on the industrial sector, with the aim to curb speculative activities within this sector and to control further increase of business costs.
The rate of 15 per cent SSD will be imposed if the industrial property is sold within the first year, 10 per cent and 5 per cent will be imposed if the industrial property is sold within the second and third year respectively.
Here's the rationale of the measure:
Ensuring Competitiveness in the Industrial Sector:
Business costs are the key ingredients for the survival of the industrial sector, with property occupancy cost being one of the main costs in Singapore.
Therefore it is imperative to ensure that Singapore maintains its competitive edge to attract foreign investment and provide a favourable platform to support the growth and business viability of Small-Medium Enterprises by keeping occupancy costs in check.
Surge in Industrial Prices and Rentals call for cooling measures:
Since the downturn in 2009, prices and rentals of industrial properties have been on the rise.
The Additional Buyers’ Stamp Duty imposed on foreigners investing in the residential sector from December 2011 did play a part in steering investors towards the industrial sector.
The increased demand had led to a 26.7 per cent increase in overall industrial prices for the first 3 quarters in 2012. This follows a 22.3 per cent increase for the same corresponding period in 2011.
Rentals have also increased over the quarters, albeit at a slower rate as compared to prices. The rental index rose 6 per cent in the first 3 quarters of 2012 and 15 per cent in the first 3 quarters of 2011.
4Q 2012 New Strata Factory Prices Rebounded:
The average transacted prices of new strata factory units have mostly rebounded in 4Q 2012 as compared to its preceding quarter.
The rising prices of new strata factory space would pose inflationary pressures on end-users as investors would charge higher rentals to match their expected yields.
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)
| www.marshe.sg | www.marsheproperties.com.sg | www.hudcsg.blogspot.com |
| www.hausatserangoon.sg | www.8riversuites.com | www.newagents.sg |