Singapore’s property prices generally go up over time, but we understand that you wouldn’t just anyhow jump into the first property you see and wait till it appreciates.
If it only starts appreciating in 20 years, you would have put in a sum of money you can’t liquidate for 20 years. You probably wouldn’t be able to wait that long. What about the fees and interest you have to pay? Is there even decent profit after?
Fortunately for you, it is seldom that bad. And it will be much better if you do your own due diligence prior. If you do your own study before you buy the latest stocks, ETFs, bonds, cryptocurrency, etc – I believe you will do the same for properties as well. After all, these are all investment assets.
This article gives you a beginner’s guide to assess if the location you see is good for investment. At this point, I will highlight that these are just simple steps to assess; there may be more to the picture you see. So please do more research or contact your property agent to get more details if you are still unsure!
Scenario: So, you have just seen this new project online and taken a look at the location. It is in a place that you like, that’s good.. You then check out the prices. Prices look good and within your investment budget. At this point, you start thinking: This property is for investment, I may like this area because it is near my relatives/friends/work place/mentor/favourite coffee shop/yoga place/etc; but is it really ideal for my property investment?
Here is what you can do:
Step 1: Look at URA’s Master Plan
Access URA SPACE and look at the area around the project. Familiarize yourself with URA’s legend and look at what is planned around the project location. Are these developments around the project primed to boost the value of the project? What are the upcoming/current/redevelopments indicated in the Master Plan?
You can venture a bit further from the exact area to look at nearby areas. What is coming up there, and will these developments help in your property value – capital appreciation or rental or both?
Sample of URA’s Master Plan:
Step 2: Research into news and official plans on development in the area and nearby
Now, I understand the above may be difficult to understand if you do not even know what’s coming up. That is why this step is for you to do some intense Google work. Research into the project location / area, and chances are that you will see some news of upcoming developments in the area shared by news sites or official sources from the Government.
For example, the Greater Southern Waterfront has been shared, discussed, broadcasted to ad nauseum, and now we all know that we are indeed redeveloping our South of Singapore. Not bad news, but probably boring news now..
You will then be able to tie back to the URA Master Plan in Step 1 to confirm your suspicions that you are indeed a Singapore Land Guru.
Step 3: What are the prices in the area?
All may align to what you think of the area now, but are the prices of the project in line with the market value in that area? Does it justify its pricing?
At this point, it would be good to know details like surrounding development prices, rental in the area and compare to the new project you were eyeing. Macro prices are good to know as well. However, I also know these details may not be readily available for you. I will recommend working with an agent to share with you here.
Conclusion:
After accomplishing above steps, are you ready to invest? I guess probably not yet. Details such as exact unit pricing, unit selection, project features, facilities, financing and etc are things you need to further consider.
Property investment is not a straight-forward matter as you most likely already know.
Please do your own due diligence and it is recommended to work with your property agent to obtain more information and for him/her to facilitate and advise the process/timelines required for you. Best of luck!
Need help to assess the latest property investment for you? Reach out to us.
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