Industrial Property Sales PLUNGED

Oxley Bizhub - affected by Industrial Property Seller Stamp DutyPop goes the weasel, Popped was the industrial property bubble, nipped in the bud with the Seller Stamp Duty on Industrial Property. Put in place in January 2013.

Sales volume dropped in Q1 2013, but traditionally Q1 is often fairly quiet due to the December Holidays, the Long CNY celebrations. But its NEVER been so bad - Sales volume in Q1 plunged 62.3 per cent quarter-on-quarter to 319 caveats, from the 847 lodged in Q4 last year. But the ones worst hit  is the sale of new uncompleted Industrial Property Projects.

New sale and sub-sale transactions registered a 71.3 per cent decline to 138, from 480 in the preceding quarter, hit by weaker buying interest after the Industrial Property Seller Stamp Duty (cooling measure Round 7 – Jan 12 2013)

To help everyone RECAP – Industrial Property Seller Stamp Duty:

Date of Purchase /
Acquisition or Date of
Change of Zoning / Use
Holding Period 
SSD Payable*
On or after 12 Jan 2013

   

Up to 1 year
15% of consideration or market
value, whichever is higher
More than 1 year and up to 2
years
10% of consideration or market
value, whichever is higher
More than 2 years and up to 3
years
5% of consideration or market
value, whichever is higher
More than 3 years 
No SSD payable

Although the number of transactions dipped, but prices have not slipped by much.

Prices of new strata factory units with a 30-year tenure slipped 4.2 per cent from the previous quarter to $345 per square feet (psf), by 4 per cent to $425 psf for units with a 60-year lease, by 1.6 per cent to $876 psf for 99-year leases, and by 3.5 per cent to $956 psf for freehold units.

This is because the demands for new Industrial Property is still high. Given the current low interest rate environment, the demand is still there, but due to the Seller Stamp Duty, buyers are sidelined watching hoping for prices to correct further. We foresee that New Industrial Property Projects will see muted demand in 2013, the focus is now shifted towards COMMERCIAL PROPERTY with the slew of Mixed developments. Commercial Property (shops & offices) is the last on the list not affected by any COOLING MEASURES, so if you are looking to put your money on a unit – you should consider several factors other than location. Talk to us to explain how not to get caught in a tenant-less position.

Popular Mixed developments launching are:

- Novena Regency

- Alexandra Central

and many more…Visit www.propertygrow.com for more details of launches

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