Commercial Property · 2026-10-01
Buying a commercial unit is a different financing exercise from buying a home. A recent piece from Stacked Homes on commercial property loans sets out how, and it is worth reading from an investor's seat, where yield, holding cost and exit all depend on how the purchase is funded.
According to the article, commercial and industrial loans have no standardised LTV cap. Loan-to-value ratios run from 70% to 90%, with investors typically lower in that range and owner-occupiers with strong liquidity and cash flow able to reach the top of it. Banks look at more than the property, and the article notes that they also consider the borrower and the wider relationship.
Commercial rates are typically about 0.5% above the benchmark rates for residential loans. The article cites recent commercial quotes at the low end of roughly 1.55% to 1.65%, with some banks pricing up to 1.8%, and one adviser expects around 2% by the end of the year. Rates climbed from under 1% to above 3% between 2022 and 2024, so an investor modelling returns should test a few higher scenarios.
The article's central point for investors is that the property alone is rarely enough. What counts is a clear investment thesis, one likely to attract tenants and keep turnover low. A unit that stays let at a steady rent is easier to finance and easier to hold than one that sits empty between leases.
It also notes that buying commercial or industrial property does not attract Additional Buyer's Stamp Duty or an LTV cap on the number of properties owned, which is a structural difference from residential purchases.
ARC 380 is a freehold, 16-storey mixed-use strata development by Tong Eng Group in District 12, at the Jalan Besar and Lavender Street area. Office units range from about 700 to 9,500 sqft, with retail and F&B on level one, and Bendemeer MRT is a five-minute walk away. The building obtained its TOP in 2018, so it is an existing, completed property rather than one still under construction.
That completion status matters to a financing discussion, since a lender can see the building as it is. Investors weighing a unit here can review the project details page for the size range and layout.
Loan terms, rates and lender appetite vary between banks and change over time. The figures above come from one article and should be checked with a lender before any decision.
Ask two or three lenders for indicative terms, request the tenancy history if a unit is let, and build a cash-flow table that includes service charges and property tax. Doing this before viewing units keeps the conversation focused on the numbers that matter.
General information only, not financial or legal advice.
To talk through unit sizes and availability at ARC 380, contact us here.
Source: Stacked Homes. This article is independent commentary; ARC 380 is not affiliated with the parties mentioned.