Freehold vs Leasehold Title
Freehold industrial property is permanently owned. Like for like, our analysis of 23,808 transacted KL and Selangor deals puts freehold about RM52,000 above a comparable leasehold property on a typical deal. Leasehold industrial property (60 or 99 years) is bankable, widely transacted, and dominates new supply in state-linked industrial parks. Check the remaining lease term: below 60 years, financing becomes more difficult and valuation discounts apply.
Financing an Industrial Property Purchase
Commercial industrial property loans in Malaysia typically cover 70–85% of market value for companies, and up to 90% for owner-occupiers under certain bank programmes. Loan tenure is usually 20–30 years. Prepare SSM registration, 2–3 years of audited accounts, and a board resolution authorising the purchase before approaching a bank.
Stamp Duty and Transaction Costs
Stamp duty on industrial property transfers is tiered: 1% on the first RM 100,000, 2% on the next RM 400,000, and 3% on the balance. Add legal fees (typically 0.4–0.8% of the transaction value), valuation fees, and applicable RPGT (Real Property Gains Tax) for the vendor, which often affects the negotiated price.
Specification vs Price
Older industrial properties often sell at a discount to newer units but may require capital investment in power upgrades, roof repairs, or floor slab reinforcement. Model your all-in acquisition cost (purchase + renovation + downtime) against a newer unit's higher sticker price before comparing.