Brunei: Commercial Property

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• The provision of adequate social infrastructure particularly public housing, healthcare and education;
• Adoption of appropriate legal and regulatory frameworks to promote investment in social and industrial infrastructure, including privatisation and public-private partnerships (PPP);
• Ensuring that funding is available for all priority government infrastructure projects;
• Reviewing the way government infrastructure contracts are awarded and managed in order to ensure that these contracts are implemented on time and cost effectively.

The BEDB says that its plans for the mixed-development of Pulau Muara Besar will create new opportunities for large scale investment in the areas of urban development, township, residential or commercial property development.

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Brunei: Commercial Property Prices

Retail units for sale in good locations go for between USD450,000 and USD650,000. Rental rates range between USD2,000 and USD5,000 per square meter depending on location. By and large, these prices are significantly lower than at the peak of the boom in 2008.

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Brunei: Commercial Property Law

In 2009, the Sultan approved the Land Code (Strata) Act Chapter 189, providing for secure ownership of multi-unit developments and permitting their use a debt collateral.

Another important provision of the Act is the introduction of 'management corporations' to ensure that the common areas of multi-unit buildings are properly maintained.

Minister of Development Pehin Orang Kaya Hamzah Pahlawan Dato Seri Setia Hj Abdullah Begawan Mudim Dato Paduka Bakar said that setting up such management corporations shouldn’t just be limited to residential strata properties, but also commercial properties.

Owners and developers are now required to set up such management corporations, known a 'strata corporations'. According to Part 4 of the Land Code (Strata) Act, “on the certification of a strata plan, by the Commissioner, the original proprietor of the lot to which the plan relates, shall become a strata corporation”.

The responsibilities of a strata corporation include insurance of a building as well as its maintenance.

2010 saw the drafting of The Architects, Engineers and Surveyors Order, governing the activities of architects, surveyors and engineers in Brunei. All such professionals will be required to register with their association.

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Brunei: Commercial Property Taxation

Since 2008, industrial buildings can be depreciated at 20% in the first year after construction, and 4% per annum thereafter. Balancing allowances or charges are made on disposal of the industrial building machinery or plant. These adjustments cover the shortfall or excess of the tax written down value as compare to the sale proceeds. Any balancing charge is limited to tax allowances previously granted, and any surplus is considered a capital gain and therefore does not become part of chargeable income.

There is a 15% withholding tax on rents paid to non-residents.

There is a municipal property tax for commercial premises based on estimated valuation; rates vary.