FAQ

AS TENANT-FREQUENTLY ASKED QUESTIONS (F.A.Q.)

RELEVANT AUTHORITIES CONTACT NO:

Far East Plaza M.C, 1259 | Tel: 67342325 Fax: 67331530
Power Supply | Tel: 6222 2333
NEA | Tel: 6225 5632
Registry of Company & Business | Tel: 6248 6028
Urban Redevelopment Authority (URA) | Tel: 6221 6666
Ginza Real Estate Pte Ltd – Charles Yue | Hp: 96736477 Tel:62353066 Email: cych2008@singnet.com.sg

  1. What is the operation hour of Far East Plaza?
    10 am to 10 pm, Central Air-con
  2. Is there any trade restriction?
    No. Most shop units are owned by the individual owners, except on level one (Ex- Metro Dept. Store). However, Tenants still need to obtain approval from the Relevant Authorities like: Food Shop – NEA, Change Of Use – URA. Pub/Lounge – CID, Fire Brigade, etc. (A list of Authority contact number is attached as above.)
  3. How do I go about doing my renovation?
    Consult and obtain Application Form from the Management Corporation OfficeNO 1259. 14 Scotts Road #07-01, Tel: 67342325 Fax: 67331530 Generally,
    a) No food shop is allowed unless it has an existing food shop background.
    b) No more approval will be granted for water supply connection if shop does not have a floor trap.
    c) Roller Shutter installation will not be allowed to replace glass panel.
    d) Sub-division of shop must have at least 250 sq ft in any resulting unit or 10 feet in shop front width.
    e) Renovation work carry out from 10 pm to 10 am only. No disturbance, nuisance and annoyance to others.
  4. How do I go about offering to rent a shop?
    Step 1 – Offer a price
    Step 2 – Put a goodfaith deposit of 1 month subject to Landlord’s approval
    Step 3 – Obtain Landlord Confirmation
    Step 4 – Sign the Tenancy Agreement within 2 weeks
    Step 5 – Obtain approval from relevant authorities, if any.
    CHARLES YUE
    HP: 96736477
    Email: cych2008@singnet.com.sg
  5. What are the conditions in the Tenancy Agreement?
    a) Tenants usually pay 2-3 months deposit for a 2 year lease.
    b) Tenant to pay stamp duty & legal Fee/Admin fee for both Tenant & Landlord Tenancy Agreement.
    c) Tenant should try to get an option to renew for shop operation continuity
  6. What happen if I want to give up my shop or look for a takeover?
    a) Under most Tenancies, Tenant needs to fulfill the full term of the lease period. However subject to the Landlord’s approval, Tenant may assign to a new party.
    b) Outgoing Tenant/Assignor pays 1 month rental or 10%of goodwill (coffee- money/Takeover fee) whichever is higher to the Real Estate Agent.
  7. How do I hand over the shop to the Landlord?
    Tenant should take in and hand over an empty shoplot free of fittings & fixture. It is recommended that the walls need to be whitewashed and carpet taken out leaving raw cement/existing tiles.
  8. Where do I seek assistance before I decide to rent/assign shops in Far East Plaza?
    Kindly come down to the Far East Plaza Tenants/Owners Service Centre situated at #05-134B.

LAST UPDATED ON Jan 2021

AS BUYER-FREQUENTLY ASKED QUESTIONS (F.A.Q.)

RELEVANT AUTHORITIES CONTACT NO:

CPF Board | 6227 1188
Singapore Immigration & Registration | 63916100
Goods & Services Tax (GST) | 6356 8233
Income Tax (IRAS) / Property Tax | 63568300
Ginza Real Estate Pte Ltd | Charles Yue – Hp: 9673 6477, Tel: 6235 3066, Email: cych2008@singnet.com.sg

  1. How much should I set aside as downpayment?
    Unlike buying a residential, Buyer ideally should set aside 20% to 30% as cash down payment. As valuation for shop is more difficult and varies widely, buyer should shop for Banks with higher/ highest valuation.Generally, the better the location, the lower or wider the gap between valuation and the purchase price. This gap is called the premium and often needs to be paid in cash.
  2. What is the cost of buying?
    The cost include legal fee, stamp duties, loan mortgage fee. Generally, the cost is about 4%of purchase price.
  3. Can you explain about using CPF + the Loan Quantum?
    Most Bank would loan you 70% of valuation or purchase price, whichever is lower. As from 1/7/2006, you cannot use CPF to buy non residential properties.
  4. Can you explain the transaction process?
    Step 1 – Offer a price and put a 1% Option Deposit.
    Step 2 – Obtain the Option to Purchase upon seller agreement & check Lease Agreement if shop is tenanted.
    Step 3 – Pay 9% and the stamp duty within 14 days.
    Step 4 – Standby the balanced cash downpayment and loan payment within 12 weeks. .
  5. Should I offer a purchase price based on rental return?
    Generally, a gross return ( before Property Tax & maintenance charges) of 4% is reasonable and realistic in Far East Plaza. But it is not the best way as current rental may be too high, or based on extra benefits given by landlord, or tenant may only last for a few months as rental was negotiated during intense competition or promise of good retail traffic / predicted sales activity or promotion.Factors Influencing Shop Purchase Price Include:
    i) Location, Actual Site & Orientation.
    ii) Rental return.
    iii) Policies by the Management Corporation, like food-shop & water supply restriction.
    iv) Investment climate & state of the economy.
    v) Government policies for e.g. No Capital Gain Tax.
    vi) Demand of shopkeepers, investors & speculators in a given area/building.All shops in Far East Plaza have been informally valued by us and given a price range recommendation for Sale/Rent. ( We are not a licensed valuer. )
    Please come to #05-134B Far East Plaza or call us at  : Charles Yue : 9674 6477
    Email:cych2008@singnet.com.sg
  6. What is Phase I & Phase II?
    Far East Plaza was developed into 2 stages. Thus the earlier Phase I is at the smaller concourse nearer to Hyatt Hotel and the overhead bridge spanning Scotts Road. Phase II is the bigger concourse surrounding the water fountain / Performing Stage.
  7. What is the maintenance charges?
    It is about S$1.20 psf + 7% GST as on Jan 2021. It may be increased or decreased by the MCST during the yearly AGM.
  8. Do I need to pay (Goods and Services Tax) GST for buying a shop?
    No, unless the seller is a GST registered member or corporate. Please check that some private limited company-owners may need to collect 7% GST on purchase price from 01/07/2007.
  9. What happen if I sell the shop within 3 years?
    There is no more Capital Gain Tax since 13 Oct 2001 and the 14/1/2011 restrictions does not apply to non-residential properties. As such, you can keep the profit without Tax. Opportunity arises now to “buy today, sell tomorrow”.
  10. What is Joint-Tenancy and Tenancy-in-Common?
    Joint-Tenancy gives ownership to the surviving partner and is most commonly used for husband and wife relationship. Tenancy-in-Common give only the portion of share percentage to the estate of the partners.
  11. Why do people invest in Far East Plaza?
    Reasons:
    i) Freehold Title.
    ii) Orchard Road vicinity (Tourist Belt).
    iii) Individual can still own (most good shopping centres are not for sale as they are owned by 1 single corporate owner)
    iv) High yield of 3% to 5% gross return.
    v) High demand from Tenant as there is generally no trade restriction on Tenant mix.
    vi) Little or low downside in value.
    vii) Long term cashflow/ retirement income.
    viii) Many end-users, investors / speculators. Over 600 shops transacted since 1988.
    ix) Developed market in price transparency & communication channel pioneered by Ginza Real Estate Pte Ltd. Please asked for a copy of the shops sold to date.
  12. Where can I find shops for sale?
    Kindly come down to the Far East Plaza Tenants/Owners Service Centre situated at #05-134B.
  13. Who can help me after I became  the Owner or the LandLord?
    Below are the services and facilities offered by us.
    A) FREQUENTLY ASKED QUESTIONS (F.A.Q.) GUIDE
    These series of questions are designed to answer the most common questions that prospective Landlords and Sellers would often request.
    Like in :
    1)  What should I do if my tenant owed me rental?
    2)  How do I know about the market rental?
    3)  Why is it I always have tenant problems?
    4)  What are some reasons for selling a shop in Far East Plaza?
    B) CARETAKER ROLE
    Having been stationed here for the last 30 years, we have been appointed by many owners as a caretaker agent.
    Our role include :
    1)  Collecting rental
    2)  Third party negotiation with existing or new tenants
    3)  Providing free replacement if your tenant quits pre-maturely to prevent you from suffering loss of income and disruption to your cashflow.
    4)  Reporting & enforcement of illegal sub-letting, unauthorized trades, assisting in Landlord/Tenant disputes and help in recovery and re-entry into the locked premises.
    5)  Forecasting rental and sale value.
    C)  ANNUAL VALUATION OPINION ON MARKET VALUE FOR SALE / RENT
    Every year since 2003, we will carry out a massive project, courtesy of our Research & Development (R&D) department, to express an opinion as to the current market price for sale and for rent on shops in Far East Plaza. (We are not a licensed valuer). Such opinions and forecasts will help the owners and landlords to evaluate their decisions to sell/rent/hold/buy. Prospective owners-turned-buyers can review these data as a guideline to the offer price of available shops as well as future potential value of shops for sale and rent.
    Owner are encouraged to meet us in person to discuss about their plans to sell/lease and buy.
    D) TENANTS/OWNERS SERVICE CENTRE @ WE HEAR YOU AND ANTICIPATING YOUR NEEDS
    Envisioned like a Business Centre in a Hotel,   the Tenants/Owners Service Centre is to provide and evolve into a one-stop service centre for existing Tenants and Landlords as well as prospective Buyers/Sellers/Tenants.
    Landlords who appoint us can tap into our Service Centre as a third party venue to resolve disputes with the Tenants regarding rental arrears,  subletting, lease assignment and pre-mature termination of lease.
    E) PAST NEWSLETTERS AVAILABLE IN ENGLISH AND CHINESE
    Since July 2002, we have published a bi-monthly newsletter on Far East Plaza.  Past topics raised include :
    –    retrofitting work in Far East Plaza
    –    Turnover problems of Tenant
    –    Illegal partitions infringing the bye-laws. By accessing to these past newsletters,  the new owners would be able to review the past years history and crisis so as to be well informed in their investment decisions.
    F) WEBSITE :
    www.fareast-plaza.com
    Through our website,  locals and foreigners alike can access into information on the shops for Sale/Rent. We have enhanced our website features in 2021 to be user friendly to smart phones and tablets. Thus, prospective landlords and sellers can have an international audience of prospective Tenants and Buyers.
    G) MANAGEMENT CORPORATION (MCST) COMMUNICATION AND ANNUAL GENERAL MEETING (AGM) REPRESENTATION
    We represent many Owners to request an appeal to the many bye-laws administered by the Management Corporation (MCST).  Oftentimes, both tenants and landlords may be faced with frustrating renovation application procedures that may bound back and forth in dealing with the Management Corporation.We also represent a huge group of Strata-Titled Owners in voicing issues and grievances affecting them during the Annual General Meeting traditionally held in October each year.AS FOREIGN BUYER-FREQUENTLY ASKED QUESTIONS
  1. How is foreign buyer taxed?
    You can own the shop under your personal name or through incorporating a Pte Ltd company. If you stay in Singapore for less than 183 days in a year, your rental income will be taxed at maximum of 22% personal income tax as in 2020. Expenses like interest servicing & maintenance charges can offset income tax.
  2. How can I get a loan?
    Yes, you can secure a Singapore Dollars loan In a Singapore Bank. Foreigners usually get 10% less loan quantum than locals. Generally, locals get 70% financing based on valuation or purchase price, whichever is lower.
  3. Who can assist me before I decide to buy?
    You can do the following steps:
    i) Go to www.fareast-plaza.com
    ii) View listing on shops for Sale/Rent.
    iii) View shopfront photographs of shops Via Whatapp / Wechat or Email.
    iv) Put up your offer with a goodfaith deposit or option money. Obtain written confirmation before proceeding with other payment / handing over to your lawyer.

Ginza Real Estate Pte Ltd
Far East Plaza #05-134B
Hp: 9673 6477
Email: cych2008@singnet.com.sg

LAST UPDATED ON Jan 2021

AS LANDORD – FREQUENTLY ASKED QUESTIONS (F.A.Q)

  1. What is the best way to rent out a shop?
    There are 3 ways:
    i) Do-it-yourself.
    ii) Call many agents.
    iii) Appoint a sole-agent.
    Appointing a sole-agent will help you to:
    i) Protect your privacy & free your time and avoid annoyance from unsolicited calls from agents & insincere enquiries.
    ii) Maintain your price. iii) Harness other agents service through co-broking.
  2. What should I do if tenant owed me rental?
    Most Tenancy Agreements state that after 7 days of rent arrear, the Landlord can call off the lease/terminate the contract and re-enter the premises. The landlord can also start legal proceeding to seize the tenant’s own belongings & business asset to sell off in an auction to make good the rental arrear. The landlord should not wait beyond 2 months to demand payment.
  3. What follow-up step can I take to ensure my shop still generates rental?
    Step 1 – Inform us about your problem.
    Step 2 – Get an undertaking that the tenant will move out by certain deadline.
    Step 3 – Standby a new Tenant through us.
    Step 4 – Finalize documentation to replace defaulting tenant.
  4. In what conditions should my departing Tenant hand over the shop premises?
    Landlord should instruct departing Tenant to hand over an empty shop free of existing fixtures & fittings. Walls should be white-washed and carpet stripped off leaving raw cement floor or existing tiles. While it may seem wasteful not to retain existing fixtures, often the landlord will waste time & money to get rid of existing fixtures when the new tenant insists on a vacant shop to suit their renovation designs.
  5. How do I know about the market rental?
    All shops in Far East Plaza have been informally valued and given a market price range recommendation (We are not a licensed valuer) . You can come to #05-134B Far East Plaza or call 9673 6477
  6. What should I be aware when signing a Lease Agreement?
    1) It is better to sign under a personal name as in the case of individual/sole proprietor and partnership. A Pte Ltd may have only S$2 paid up capital and you may not recover debt from the directors/shareholders.
    2) Never fix the rental on the Option Period as it would affect the shop value for rental return & capital value.
    3) Putting the option to renew as ” at mutually agreed price” will need to be determined and agreed by 2 parties. “At the future market value” means rent can then be measured & quantify (call us for assistance to express a fair market price).
    4) The Tenancy Agreement should be stamped from the start within 14 days ( or 28 days if the landlord/tenant is stationed oversea). The Tenant pays for both stamp duty and the legal fee/admin fee of landlord & tenant.
    5) Never let the Tenant sub-let without your written permission or else you may not trace who is accountable to you for rent & duty to the relevant authorities.
    6) Landlord should quote rental inclusive of maintenance, otherwise landlord is still held responsible for arrear to the Management Corporation.
    7) Call for our assistance at hp: 9673 6477 , if you detect or suspect tenant’s conduct as follow: i) Always late in rent. ii) months rent over due. iii) Shop not open for many days. iv)Tenant always asking for rent reduction. v) Tenant want to sub-let. vi) shop already rented out to sub-tenant vii) Possibility of tenant running away over-night.
  7. Why is it I always have Tenant problem?
    Possibility that you did not qualify & check tenant’s suitability.

    * Business capital * Existing track record
    * Suitability of location for their trade * No tracking on rent delay
    * Absent business ownership * Foreign business ownership

    Call us. We provide property management and rental collection. We give a service warranty that should your Tenant quit, we will find another free of commission.

  8. Who can help me to solve my tenants’ problems?
    Kindly come down to the Far East Plaza Tenants/Owners Service Centre situated at #05-134B, Hp: 9673 6477

LAST UPDATED ON Jan 2021

AS SELLER-FREQUENTLY ASKED QUESTIONS (F.A.Q.)

RELEVANT AUTHORITIES CONTACT NO:

CPF Board | 6227 1188
Singapore Immigration & Registration | 63916100
Goods & Services Tax (GST) | 6356 8233
Income Tax (IRAS) / Property Tax | 6356 8300
Ginza Real Estate – Charles Yue : 9673 6477

  1. How do I know about the market value to sell?
    All shops in Far East Plaza have been valued informally for rental and sale and given a price range recommendation ( We are not a licensed valuer). This is to ensure transparency and more perfect knowledge in a developed market.
    We have collected over 600 data on shops sold over the last 30 years. You can personally come to our office at #05-134B Far East Plaza or call 9673 6477 or email at cych2008@singnet.com.sg .
  2. Will I be taxed if I sell at a profit within 3 years?
    There is no more capital gain tax based on personal income tax. This policy has been abolished since 13 Oct 2001 and the 14/1/2011 restriction does not apply to non-residential properties. You can now buy today and sell tomorrow!
  3. What happen if the area in Sq Ft is less?
    The buyer may ask for compensation, a reduction in price, or even abort the sale. Most individual owners over-quoted the square-area because a subsequent survey by government department revealed a smaller area than quoted initially by the developer. We have the latest square-area by the survey department. You can personally come to our office at #05-134B Far East Plaza or call 9673 6477 or email: cych2008@singnet.com.sg.
  4. What is the best time to sell?
    Based on the shop’s tenancy, the period 3 – 6 months before the tenancy expiry is best as the buyer can choose to negotiate a new rental or re-possess for own use ( subject to Tenant’s terms & condition of lease)
    Sale price may be affected by:
    i) Rental returns
    ii) Option to renew at fixed rental price.
    iii) Environmental factors like noise, heat, smell, rowdiness of neighbouring occupants.
  5. What are some reasons for selling a shop in Far East Plaza?
    i) The shop price in Far East Plaza has somewhat been rising during the last 30 years, while the downside is low or minimum. A shift from shop to liquid assets could help with cash flow for retirement or lifestyles adjustment.
    ii) During a crisis, some sell to pay off loan, reduce interest – servicing, re-balance asset allocation, and converting to more liquid assets.
    iii) Some very good locations are bought and held by owners for long-term cash flow. Only during a crisis, opportunities arise to buy such good locations. Many owners actually sell off their present shops to buy into a better location shop both in Far East Plaza
    iv) Shareholders of Tenancy-in-common ownership sell so that they can realise their cash or redeploy into better investment scheme. It may also be due to partners/ children’s falling out with each others or simply going their separate ways.
  6. What is the best way to sell a shop?
    There are 3 ways:
    i) Do-it- yourself.
    ii) Call many agents.
    iii) Appoint a Sole-Agent. Appointing a Sole-Agent will help you to:
    ai) Protect your privacy & free your time and avoid annoyance from unsolicited calls from agents & insincere enquiries.
    aii) Maintain your price.
    aiii) Harness other agents’ service through co-broking .
  7. Our records: In Far East Plaza.
    i) 30 years stationed here in Far East Plaza  Hp: 96736477 Email: cych2008@singnet.com.sg
    ii) Complied over 600 data on shops sold.
    iii) All shops are informally valued and given a price range recommendation for sale/rent.
    iv) Complied the latest accurate square area to prevent mis-statement by owners. Solve/mediate disputes between tenants and landlords.
    v) Regard as the de-facto (most popular) agent from Buyer / Sellers / Landlords / Tenants / Assignors / Assignees and the Press + TV media.
  8. Where can I seek assistance to discuss about the sales?
    Kindly come down to the Far East Plaza Tenants/Owners Service Centre at
    #05-134B. Charles Yue: 9673 6477, Email: cych2008@singnet.com.sg

LAST UPDATED ON Jan 2021