Avoid These Mistakes in Singapore’s Commercial Property – Ang Chee Hian

Investing in commercial property in Singapore can be rewarding if you do it the right way. Rental yields, capital appreciation, and steady tenant demand make it an attractive choice for many investors. At the same time, mistakes in this area can be very costly. A wrong decision often leads to years of lost income, unexpected expenses, and difficulties with resale.

In this post, we will look at common mistakes people make when buying or investing in commercial property in Singapore and how to avoid them.

Not Checking the Lease Tenure Properly

One of the first things to pay attention to is the lease tenure. Many commercial properties in Singapore come with shorter leases, sometimes as little as 30 years. A property with a short remaining lease can be harder to finance, harder to resell, and may not deliver good long-term returns.

Always confirm the lease tenure before making an offer. Compare it with other options in the same area and think carefully about the long-term value. A property that looks cheap may not be a bargain if the lease is running out.

Ignoring Tenant Quality

It is tempting to buy a unit that is already tenanted, thinking the rental income is guaranteed. But the quality of tenants matters far more than having just any tenant in place. A tenant with poor financial stability may default or leave earlier than expected.

Before investing, ask for tenant details, lease agreements, and payment history. A reliable tenant with a good track record gives you stability and peace of mind. Do not be swayed by short-term rent without checking how sustainable it is.

Overlooking Foot Traffic and Accessibility

Location is important, but within each location, the exact placement of your property makes a big difference. Many investors buy units in malls or office buildings without studying how people actually move around the area.

A shop unit hidden in a corner with very little foot traffic will not attract businesses that rely on walk-in customers. An office space far from MRT stations or bus routes may not appeal to tenants who value accessibility. Always spend time at the property, observe traffic patterns, and think like a tenant before buying.

Focusing Only on Looks

A newly renovated property may catch your eye, but looks alone do not guarantee good returns. Some investors spend too much on upgrading interiors, forgetting that tenants often have their own fit-out needs.

Instead of focusing on how “beautiful” the property is, consider how practical and flexible the space is. A unit with efficient layout, good ceiling height, and basic functionality is often more attractive to tenants than one with flashy decoration.

Ignoring Market Trends

Singapore’s commercial property market is not uniform. Different sectors perform differently depending on the economy. For example, logistics and warehouse spaces have seen rising demand due to e-commerce. On the other hand, traditional office spaces in certain areas may face slower rental growth.

Investors sometimes make the mistake of buying simply because prices seem lower than before. Without understanding which sectors are in demand, they risk holding onto properties that do not attract stable tenants. Always study rental yields, vacancy rates, and upcoming developments before making a decision.

Forgetting About Maintenance and Upkeep

Every property requires ongoing maintenance, but some require far more than others. Older buildings may have higher maintenance fees or need repairs more often. These costs eat into your rental income and reduce your overall returns.

Before buying, ask about monthly service charges, sinking fund contributions, and past records of maintenance issues. A slightly cheaper unit with high upkeep costs may end up costing you more than a newer, well-managed property.

Not Having an Exit Plan

Many investors buy with the idea of collecting rent but do not think about how or when they will sell the property. Commercial properties can take longer to sell than residential ones, and their value depends heavily on the remaining lease and tenant profile.

Having a clear exit plan will help you choose the right property from the start. Consider how attractive the property will be to future buyers and whether the location has long-term growth potential.

Listening to Hype Instead of Research

It is easy to get carried away by marketing pitches or stories of quick profits. Some investors make decisions based on hype instead of proper research. This often leads to disappointment when the expected returns do not appear.

Take time to do your own study. Visit the property multiple times, speak to agents who know the area, and check official sources for zoning and future developments. Informed decisions are always better than quick, emotional ones.

Learning from Experienced Investors

Avoiding these mistakes requires patience, discipline, and a willingness to learn. Investors like Ang Chee Hian often highlight the importance of looking beyond surface-level details and focusing on long-term value. By paying attention to tenant quality, lease tenure, and market trends, you can protect yourself from costly errors and build a stronger portfolio.

Conclusion

Commercial property in Singapore offers many opportunities, but success depends on avoiding the common traps that catch less prepared investors. By checking lease tenures carefully, studying tenant quality, focusing on practical details, and planning your exit, you can reduce risks and improve your chances of steady returns.

Smart investing is not about chasing the most eye-catching property. It is about making thoughtful decisions that will stand the test of time.