Why rich investors in Singapore avoid buying condo
Why do some rich investors in Singapore avoid buying condos?
It’s not because condos are bad investments.
It’s because of tax.
If you already own one or two properties in Singapore, buying another residential property means paying Additional Buyer’s Stamp Duty.
That can be 20%, 30% or even more depending on your situation.
So many experienced investors start looking at non-residential assets instead.
Things like:
• commercial property
• industrial property
• niche assets used by businesses.
For example, there’s a new project in Kallang called Gourmet Xchange.
It’s designed for food production, central kitchens and catering businesses, developed by CapitaLand Development.
Entry prices start from about $680k, and because it’s industrial property, there’s no ABSD.
So the question is not whether investors still buy property in Singapore.
The real question is what type of property they buy.
If you want to see how investors structure these purchases, comment ‘INDUSTRIAL’
#industrialproperty
As someone who has closely followed Singapore’s real estate landscape, I’ve noticed a clear trend among affluent investors to shift their focus away from traditional residential properties, especially condos, towards commercial and industrial assets. The key driver behind this behavioral shift is the Additional Buyer’s Stamp Duty (ABSD) imposed on buyers who already own one or more residential properties. This tax can significantly increase the cost of acquiring a condo, sometimes adding 20%, 30%, or even more, which can erode investment returns. From my own observations and conversations with seasoned investors, many perceive commercial and industrial properties as practical loopholes that allow preservation of capital while still gaining exposure to Singapore’s real estate market. For instance, industrial properties like the Gourmet Xchange development in Kallang—specifically designed for food production, central kitchens, and catering businesses—represent an innovative niche where buyers can invest without the burden of ABSD. Entry prices starting from around $680,000 make these assets accessible relative to premium residential condos. Investors appreciate that industrial and commercial spaces serve real business needs, offering steady rental income potential from long-term leases by established companies. Unlike residential condos, these properties may have more flexible usage and lesser restrictions, appealing to those who want diversified income streams or who plan to use such properties for their own enterprises. Personally, embracing these alternative asset classes has proven beneficial in managing risk and optimizing net returns, especially in an environment where government policies aggressively manage residential property speculation. While condos remain popular for personal use and owner-occupied purposes, for investment portfolios, considering non-residential assets is a strategic move that aligns well with current tax frameworks and market conditions in Singapore. Overall, understanding ABSD’s impact and exploring non-residential investments can empower buyers to make smarter decisions. Whether it’s commercial offices, industrial warehouses, or niche business-use developments like Gourmet Xchange, these alternatives offer viable pathways to grow wealth without the heavy tax penalties linked to multiple residential property ownership in Singapore.
