For Expatriates visiting Singapore in search of gems to invest in this little red dot. Our advice is to consider the big picture and compare specific projects for investment.
In terms of big picture, it is important to do research on Singapore progress as a nation. What are the fundamentals that give you the confidence that in the next 5-10yrs, the property sector will continue to give you the expected return you want. Wikipedia will be able to give you sufficient demographics on Singapore as a progressing nation as well. It’s also important to understand the possible downside risks by asking what are the possible situations that can affect the Singapore Property fundamentals. Engage the right professionals to understand the above questions are a good start for expat exploring a long term view of investment in Singapore properties.
Speculative plays are lesser in the private residential spaces in Singapore property investment. As this site does not encourage speculative play, we would not comment much on it, except the fact that the recent government measures should have sent sufficient signals needed for those who wants speculation.
The comparison for specific projects would be a tricky one. This area requires sufficient knowledge to ensure you are picking up the right projects to compare before making a wise decision. Experts commonly call it Comparable Market Analysis or CMA. Without the right handle to examine which are the right projects to analyze, the analysis work could be quite a huge task. Our recommendation is that you need to understand your budget range for investment, the category of projects, the tenure, the location, the attributes, the size of the projects, the facade of the projects, the rental returns and more.
If you are on a bargain hunt, choose one that gives you a high return and best if also a safe return in a sustainable fashion. If so, you would probably want projects with good track records in the private non-landed resale property market sectors. Aim for high returns instead of the exterior factors like facade etc.
However, if you are “Gem-hunters”, and only want luxurious or new projects, then the comparison would require your sharp selections on the ground based on showroom or those facade. In recent years, where developers units have reached TOP, or completed, and still unsold, you may even get a chance to see the product prior to the purchase. If so, usually prime districts like District 1 Marina Bay Area, District 9,10,11 spanning from Orchard shopping belt to Somerset and Novena area may appeal more to you. For investment where the primary objective is capital gain play, perhaps rental return is secondary. If so, ensure that your purchase is a property that has unique features like special facing, high floor, luxurious spaces to command the high prices of the high-end status. Some investors would use nearby recent rentals to gauge the likely potential rental returns too. Using the simple formula for rental yield. Potential rental yield = Similar avg rent x 12 divide by the average sale price of similar size units.
While Singapore holds many exciting future for investors, expats investing in Singapore must intelligently ensure the real estate advisor(s) do the right background work for your investments.