What Makes A Good Property Investment In Singapore?

What Makes A Good Property Investment In Singapore?

Calculator with a table full of bills

People in Singapore look at property as many things – a home, a source of rental income, and very often, an investment. Yes, it’s true: buying the right property in Singapore can be very lucrative in the long run. But how do you know a property is the right one when you buy it? What signs should you look out for to spot a good property investment in Singapore? If these questions are floating around in your head, then you have come to the right place! In this article, we are going to walk you through some subtle details about properties in Singapore that may indicate an increase in value in the years to come.

Nearby Buildings

a map that shows different locations

As you probably already know, the first rule of property is: “Location, location, location!” And that is why when you consider any property, you need to consider the buildings near it – these can affect its value buy a pretty big percentage. For property investments in Singapore, one of the key aspects would be which schools are nearby. Having schools near a home can make a property very popular among parents, because the nearer you live to a school, the easier it is for your child to get in. And of course, this added popularity and demand makes the property value increase.

Convenience can also be a major selling point about a property’s location. Are there any shopping malls near that property? How about MRT stations and bus stops? Is the property easy to access by roads? All these factors can make or break a property investment in Singapore – so keep a good eye out for them!

Future Developments nearby

 a picture of a building

If you’re looking for good property investments in Singapore, then you will also want to look at current construction projects that could increase your property’s value in the future. Singapore’s Housing Development Board (HDB) does release upcoming amenities and buildings that will be located near build-to-order (BTO) flats during their sales releases. These can be some good indicators of future value spikes for a property. For more location-related details on the upcoming November sales launch, click here!

Lease status

If you’re looking at leasehold properties in Singapore, looking at the number of years left on the lease is definitely something you would want to do to make sure you are making a good property investment in Singapore. New HDB flats come with a lease of 99 years, after which the value of the property drops to zero. So as the number of years left on a property lease decreases, you can expect that the property value will decrease as well! In particular, significant drops in property value tend to happen when there are about 80 years left on the lease, and when there are only 30 years left on the lease. Simply put, you may want to avoid buying a property with a lease length that is nearing either of these numbers – there might be a drop in value in the near future!

Condominiums may be preferable to landed properties

Why? Because landed properties tend to be more expensive to maintain! Landed properties are also more expensive to rent out, which means tenants are generally more inclined to look for condo apartments to rent out. This also means that owners of landed properties may find it more difficult to find tenants.

Because of these factors, condominiums are a popular choice among many Singaporeans. And of course, when the demand rises, so does the property value. As a result, the prices of condominiums may be more prone to increasing than landed properties.

Conditions of the property

A picture of a home with bad wall conditions

In investing, one of the major principles is “make money with as little money as possible”. In other words, the less capital you need to channel into an investment, the better. This is what makes the condition and maintenance of a property so important. In making a good property investment in Singapore, you want to make sure you don’t need to channel much of your hard-earned money into expensive post-purchase procedures. This includes repairing water-damaged areas, replacing defunct appliances, removing pest infestations, smoothing out a popcorn ceiling and so on. Instead, all things being equal, try to find a home that is you can accept in its present condition. But of course, if you do find a low-priced fixer-upper that needs only minor modifications (for instance, just an extra coat of paint to cover up cracks in the wall), go for it!

Take note of the circumstances

a picture of market trends

One final note for making a good property investment in Singapore: pay attention to the circumstances surrounding the property you have your eye on. This year, for example, the CoVid-19 pandemic hit the world hard, and the values of more liquid assets such as currencies and stocks have been fluctuating. In times like this, it might be good to turn to more solid assets such as property. For more details on how CoVid-19 has affected the property market in Singapore, click here!

Another thing to consider is the price trends in nearby neighbourhoods. In general, homes situated near one another tend to share the same fluctuations in value. So if the property values in a nearby neighbourhood begin to skyrocket, there is a chance that the value of your property may increase in the next few months too! And of course, if all the property values in the surrounding neighbourhoods suddenly begin to plummet, you may want to hold off buying your property for a while and see what’s going on.

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