14 Answers

Dear Albert,
When one wants to buy a property, there are a few factors they need to consider.
1. Is it for own use (stay) or investment(to be leased out)?
2. What is your short and long term investment goals?
3. How much gearing will you need?
What type of property you should buy will depend on your answers to the above questions.
As a general rule, prices are determined by demand and supply. In land scarce Singapore, prices of landed properties will always be on a upward trend with fluctuation pegged to the real estate cycle. However, it is not across the board the "landed" properties will flare better than "strata titled" properties. The No. 2 factor affecting property prices i.e. LOCATION do have a very substantial effect on the price too.
Although real estate agents do not have a crystal ball in front of us to predict the real estate market's trend, our experience, knowledge and being out there in the "battle field" do give us a competitve edge on this subject. Read More
Kevin Chung 莊國賢
Dear Albert, we have to consider a few factors before answering your question.I'll just raise one important consideration.

1. Foreigners cannot buy landed properties (easily). The appreciation of landed FH properties is limited by the above. There will always be some super high price transactions that catches media attention but prices above $2000psf are rare and few.

Strata-Title FH however do not have that restriction. There are easily 50 times more units sold above $2000psf compare to each landed sold above the same price.

Give me a call if you want more insight into real estate investment.

Kevin Chung
 +65 96855070 
DTZ Debenham Tie Leung (SEA) Pte Ltd Read More
Kevin Yeow 饶国威
Dear Albert
You are right - owning a landed property in land-scarce Singapore is certainly of promising upside - given that governance and economy of our country remains relatively stable & progessive.

With current demand in an upward trend spur by the growing wealth of those eligible, current appreciation in prices are obvious. (what if LDAU relaxes foreign ownership, this will accelerate even further as noted in the condominium segment).

Location is prime here also to the contribution of the rate of increase as stated by many of my peers.

However, as with all investments, one should also be aware of the risks inherent to be consider. (Will Singapore continue its prosperity path say 5, 10, 25years later . . .?)

Properties take some time to convert to liquidity - should also be consider.

As Singapore has been well governed thus far with a stable robust economy - proactive yet relatively flexible, the rate of return for a landed property is a promising outcome. One should also not forget, that no matter what - a property serves its primary role - that of a shelter & comfort and even prestige for those own their own land - that alone is intangible and invaluable . . .

After all, we don't live forever - so, let's live life to the fullest!!!

Kevin Read More
Lester Chen 陈楷融
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Jonathan Tong 董德祥
Hi Albert Lim,

Congratulating you for the Top viewed Question. 45885 viewers include me. Since Mar 2008. Well done.

Just like this interesting question you had posted 3 years 5months ago, the number still counting.....
Your property investment will continue to grow stronger and better in value as year go by. Regardless whether is a leasehold or freehold property.
Eg : Farrer Court, a leasehold "HUDC" before privatized balance 60 years lease, each was sold for $2.15m. "location, location, location".
For the landed property at Nassim, it very interesting.
We need to thank our Government, for the stability, good infrastructure, our world class banking & financial system, especially the strong S$. And restrictedHi Serene,

If you are single, the HDB require a minimum age of 35 years old to qualify to buy the resales "open market" HDB flat only.

Meanwhile, I suggest you may want to get financial plan ready.
Your CPF funds at the Ordinary account, ( include last 15 months contribution) last 3-months payslip or IRAS income tax statement. ownership for all landed property, less LDAU approved owners or the landed at Sentosa.
I agreed all property in Singapore will continue to appreciate over time, the limited land available and have a good government system.
Buying a property is a long term investment, be it for own-stay (our need or pleasure, or investment ( to hedge against inflation, interest rate or opportunity cost).
Future value for most property will rise in different percentage will very much depend on the location (central d1-d8, prime d9-d11)
I would advise for best investment purpose, multiple properties in various central or prime districts.
However, if for your own-stay, pleasure, enjoyment of life, the value cannot be compared or value can be measured. You can choose the bungalow on landed property or "bungalow in the air"
Big penthouses with swimming pool and many other good facilities with security. (The later, has no restriction on foreigners' ownership) .

You are pamper with many choices, but this time make sure you buy with no regret. We need not wait another 30-40 years and regret we never invested in properties.

All the Best.

Best Regards,
Jonathan Tong
Orangetee.com Pte Ltd
Mobile : 9782 2848 
Email: jonathan.tong@orangetee.com Read More
Clive Foo Mr Daikin
Hi Albert,

Heard this from a taxi uncle recently. 40 years ago, his pocket money was only 5 cents. But now if you give 5 cents to a young kid, he might just throw it on the floor! Maybe now he needs $5 for his daily spending needs. From 5 cents to 5 dollars, that's 100 times or 10,000% inflation in just 40 years !!!

That's why in property investment, you buy and wait, you don't wait to buy!!! Billionaires around the world like Li Ka-shing and Donald Trump definitely had their strong foothold in property investment! It's the only investment with the high leverage of using other people's money (OPM-Banks) The more you owe, the richer you get!!! But leveraging is a double-edged sword, it's all about how you manage it. You can give a sharp knife to a 10 years old boy, he might harm himself with it. But on a positive note, he can learn to cut food and become the next Master Chef!!

The reason why the ultra rich buy S$29M property @ S$5600psf in an upmarket district is because it is the most expensive. Traditionally, if you buy anything that is low in price, this product won’t be able to rise above the next product as it will always determine by the second cheapest property. And the second cheapest property for that category is affected by the next and so on. A classic example, an average HDB resale price of $400-500psf won't go higher then EC average of $700-800psf in today's market.

There is always a perception of the price. But the beautiful thing about buying the most expensive product is that there is nothing on top of it to block your growth because everybody knows that it is the most expensive. That is why good investors buy the most expensive property, they don’t buy the cheapest. When comes to a house for own stay, maybe a fully paid reasonably affordable house is more practical.

Sometimes people like to buy expensive things for no apparent reasons, give them cheap they don't buy. It's about ego and vanity, they feel good by buying the most expensive. Do you think those buyers of $50K limited edition Rolex are not smarter then those who bought $80 Citizen watch? Both served the same purpose of telling the time right? (BTW, I'm not Rolex sales stuff;) )

Talking about freehold and leasehold, a leasehold property not necessarily will depreciate in value in the land-scarce Singapore. In fact, most leasehold project in recent launches are selling at much higher psf then the older freehold development around the vicinity! The only regret is not buying it earlier!

Have a great investment journey ahead!! Call me for rare property investment opportunities in Singapore, Malaysia and Philippines.


Clive Foo
District 65 Pte Ltd
mobile: (+65) 91072101 
clivefoo.d65@gmail.com Read More
Mani Subramanian Veeramani
Dear Albert Lim

You have posted this question on Mar 12, 2008. There were several changes that happened in the real estate market especially in the last few years, so you and the viewers of this post need to be updated. First I help home buyers sellers and investors by educating them. That's why there are more than 11,400++ fans following me on LinikedIn.

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Danny Lim (林益祥)
Since the Singapore government has ceased to offer freehold land parcels under its Government Land Sales (GLS) Programme, and with most residential properties occupying 99-year leasehold sites, it would be interesting to observe the price performance of leasehold properties as their tenures run out.

Lessees may apply to top up the lease to a fresh 99 years. However, a lease extension will typically be granted only if it involves land use intensification or urban renewal, such as in an en-bloc sale for redevelopment. Meanwhile, the recent hike in development charge rates and the continued enforcement of the Qualifying Certificates Rule have further diminished chances of a successful en-bloc sale for leasehold sites.

For new developments, there is no clear winner between leasehold and freehold properties in terms of price performance. However, things could change when the remaining lease gets shorter.

For one, financial institutions might be reluctant to extend loans for properties with a short balance lease. The loans are usually granted on a case-by-case basis and come with a lower loan-to-value ratio or shorter tenure.

There are also more restrictions in using CPF savings to finance the purchase of such properties, such as a stipulation of a minimum remaining lease of 30 years. For properties with a remaining lease of between 30 and 60 years, the buyer’s age and the remaining lease must total at least 80 years.

All this means that as the remaining lease runs down, the pool of potential buyers will shrink. To illustrate: 30-year-old buyers can only use CPF savings for properties with a balance tenure of at least 50 years while buyers above 40 years of age can still use CPF savings for a property with a balance tenure of at least 40 years.

There are also limits on the amount of CPF savings that buyers can use to pay for such homes, based on this formula: (Remaining lease of the property when buyer is 55 years old) / (Lease of the property at the point of purchase) x (Valuation Limit). The Valuation Limit is the lower of the purchase price or the value of the property at the time of purchase.

Warm Regards,
Danny Lim. Huttons
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NTU BBM (Finance)

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I agree with you Albert !
Let's go get the 20,000sqft property.
Take you pick, Nassim Road or Cluny Park ?

- Hakim
 9144 9841  Read More
Hi friend,

Feel free to reach out for any real estate related matters on Whatsapp at 9 01234-21 and I would gladly assist.

Have a good day!

Best regards,
Kenneth Wong
 (+65) 90123421 
OrangeTee & Tie Pte Ltd 430 Lorong 6 Toa Payoh #01-01 OrangeTee Building Singapore 319402
Estate Agent Licence No. L3009250K Read More
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