Selling & Exit Strategies

Seller's Stamp Duty: industrial only

This is the detail that catches people out: Seller's Stamp Duty (SSD) applies to industrial property sold within a holding period, but commercial property — offices, retail units, shophouses — is exempt from SSD entirely, regardless of how quickly you sell.

Commercial property (office, retail, shophouse) carries no SSD at any holding period. Rates and rules are subject to change — verify current figures with IRAS before relying on them.

Sell now, or keep leasing it out?

If the unit is already income-producing, the exit decision is really a comparison: the lump sum you'd net from a sale today, against the ongoing rental income (and any capital appreciation) you'd forgo by holding and continuing to lease it. Vacancy risk, upcoming lease renewal terms with your tenant, and how much capex the unit might need soon are all part of that math — not just the headline sale price you're being offered.

Where en bloc fits in

Commercial and industrial developments can go en bloc the same way residential ones do — a collective sale needs consent from owners holding at least 80% of share value and strata area (90% for developments under 10 years old), followed by a tender process. The mechanics are the same; what changes is the buyer pool (usually developers or investors with a specific redevelopment plan for the site) and the tax treatment of your payout, which follows the same SSD rule above if your unit is industrial and within the holding period.

Which situation fits you?

• Selling industrial property within 3 years of purchase: run the SSD numbers first — it can be a meaningful cost depending on exactly when you bought.
• Selling a commercial unit: no SSD to worry about, so the timing decision comes down purely to market conditions and your own plans.
• Weighing sell vs. continue leasing: compare the net sale proceeds against realistic ongoing rental income, not just the current offer on the table.

Tenure — freehold vs 99-year leasehold — also affects pricing and en bloc likelihood here, the same way it does for residential. That's covered separately; happy to walk you through it when we talk.