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Buy or Rent

Should Your Company Buy or Rent Industrial Space?

Owning a strata B2 unit fixes your occupancy cost and builds equity; renting preserves cash and flexibility. How the trade-off looks at GATE+ Tukang.

The question behind the question

Most companies weighing this are really asking two separate things: whether they can afford to tie up capital now, and whether they can predict where the business will be in ten years. Buying answers the first badly and the second well; renting does the reverse. There is no general answer, but the trade-off at GATE+ Tukang is unusually clear because the numbers are knowable. Figures here are as at September 2026.

What buying actually commits you to

The commitment is front-loaded rather than spread. On an entry unit from S$792,000, the cash needed inside the first eight weeks is your share of the 20% due, the 9% GST on it, Buyer's Stamp Duty of S$18,360 and your legal fee — before a single construction instalment. Add fitting-out, valuation fees and bank charges, none of which sit in the purchase price.

Against that, the occupancy cost becomes largely fixed. A mortgage instalment does not reset every three years the way a rent review does, and once the loan is repaid the cost of occupying the space falls away almost entirely. For a manufacturer with heavy fit-out — power distribution, extraction, floor loading reinforcement — that stability matters more than it does to a business that could move into any warehouse. Fit-out you pay for in a unit you own is an investment in your own asset; the same spend in a leased unit is written off against someone else's.

Where renting genuinely wins

Renting preserves working capital, which for a growing business is often the binding constraint. It also preserves optionality. A company that may double headcount, pivot its process, or consolidate two sites in five years is poorly served by owning a unit sized for today. Exit is faster and cheaper: a lease ends, whereas a sale takes time, costs agency fees, and is subject to whatever the market offers at that moment.

There is also a holding-period consideration specific to buying. Industrial property carries Seller's Stamp Duty if sold within three years of acquisition — 15% in the first year, 10% in the second and 5% in the third, with nothing payable after that. If there is a realistic chance you will need to exit inside three years, that alone can settle the question.

The GATE+ case, specifically

Three features shape the calculation here. The 33-year lease from 27 August 2025 is longer than the 30 years common in the segment, which affects both financing and what remains to sell later. The ramp-up design reaches every floor, so a unit on an upper level is operationally comparable to one lower down rather than being a compromise. And the development targets Green Mark 2021 Platinum Super Low Energy, which bears on running costs across the whole holding period rather than just on the purchase.

Location is the fourth factor and the hardest to replicate later. The unit sits in the western industrial belt with AYE access and the Jurong Region Line under construction — the piece on the Western Growth Corridor sets out what is being built around it, and the GATE+ location page covers connectivity in detail.

How to decide without guessing

Model both, over the same period, with your own numbers. On the buying side, the GATE+ purchase calculator gives upfront cash, the stage-by-stage schedule and the monthly instalment once the loan is fully drawn, plus an indicative property tax figure at 10% of Annual Value. On the renting side, take your current rent and escalate it realistically across the same years — and if you are an owner-occupier moving from leased premises, remember that rent continues throughout construction alongside progressive interest, so model both together.

What the comparison cannot tell you is how certain your five-year plan is, and that is usually the deciding input. Where GST is concerned, whether your company can recover it turns on the buying entity and its own circumstances rather than simply on being GST-registered, and is subject to the rules set by IRAS — worth confirming with a tax adviser before committing. To talk it through against a specific unit, see the balance units chart or reach the GATE+ sales team.

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