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With declining rental yields and limited capital upside (as developers tend to future price their projects), is there still investment potential left in buying new projects? It used to be attractive buying new projects 10 years ago, but it is no longer the case now.
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6 Answers

Hi,

It depends on what is your current and future plan, how far are you looking at.

We always hear this statement very very often:"Dad, why you didn't buy landed property when you are younger, it was so "dxxx" cheap?"

You mentioned 10 yrs ago it is attractive to buy new project 10 yrs ago. Are you looking at 10 yrs later to buy property now?

By the way, just to share with you that more and more current project had already or going to increase price up to another 3% or more. If you are looking at 3 years down the road, you make an immediate gain of 3% by buying today.

If you are looking at 10 yrs down the road, are you looking at economic downturn for the next 10 yrs, or the other way round?

Hope the above answer to your main concerns, but if there are more queries, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com

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  • AB
    Just study the rental increase vs price increase in property 10 years ago til now and you will understand my concern better.
Hi there,

Thank you for your query!
For investment , of course location plays a huge part in consideration. But above and beyond we cannot negate the other factors - the amenities (distance to amenities), accessibility (how well connected the development is to town/ MRT etc), rentability (depending on development and unit itself) etc. The real returns of your investment solely depends on the quantum you're investing and your investment objectives (projection in mind).

To be able to guide you , I would require more details on your end , to understand your investment objectives ( capital appreciation and rental yield in mind) as well as churn out a financial report after some calculations. Based on this, I would narrow down what exactly you could focus.At the end of the day your objective is to make money and we are here to advise. Furthermore , I have a complete reel of data that is able to show complete price transaction caveats of each and every development in Singapore as well as projected returns and capital appreciation and this has helped many of my clients in managing and growing their portfolio .

Let's discuss further so that I can propose not just projects but also exact unit layouts which will be highly sought after by investors and tenants likewise. That will be a triumphant to your investment. Furthermore, I will take the opportunity to chart out the sales report & projected returns, offering market insights for your consideration.

Visit my website for my recent accolades and testimonials@ www.kumarrai.com.

D Kumar
 +65 96659926 
ERA Associate Division Director

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Dear Sir/Mdm,

I agree with you that the rental yield is not catching up with the increase in prices. There are probably other investment options that are available in the market that offers much higher yields as compared to property.

However, the upside potential of properties in Singapore are still worth exploring as land sales prices and construction costs continue to climb. The vacancy rate remains stable and in time to come, our government will relax it's immigration policies and eventually there will be an influx of people to support both the rental and sale market.

Personally, I feel that it is still worthwhile to invest in a property, however it is also important to invest in the right one so that you will be able to ride the property cycle and enjoy the capital appreciation!

Please feel free to contact me so that I can understand your objectives better and provide you with further assistance!

Regards,
Nick Tan
(M) +65 9644 4854 
B.Eng(Chemical)(Hons)(NUS)
Cert-in-REA
(E) nick96444854@gmail.com
Visit my website to know me better: www.nicktan.com.sg

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  • AB
    Upside is very limited with the prices that developers are selling their projects now. 10 years ago, developers were selling cheaper than resale condos to entice people to buy, now it is no longer the case, new projects are all selling hundreds of psf higher than surrounding projects. Just because they bought their land high, it doesn't mean the projects are worth buying at that price.
Robbie Chen Chee Howe
Hi,

I agree that rental yield remains soft. But it is perfectly normal for Developers to "future price" their projects, especially during bullish market sentiment.

As a resale condo owner, do you not "future price" your property when you want to sell it? Will you not tell your Buyers about the up-and-coming developments in Masterplan in your area, to convince them to pay a higher price for your property during negotiation? That, my friend, is also future-pricing.

Having said that, there are still many gems left uncovered in today's market. I have recently helped my Buyer purchased a Freehold 3BR in RCR for less than $1m, or below $1000psf.

Should you need any further assistance in matters relating to property, please contact me at my mobile 9748 6305  . I will be happy to assess and share with you the possibilities for you and your partner in the current market.

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More
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Robbie Chen Chee Howe
Hi,

I agree that rental yield remains soft. But it is perfectly normal for Developers to "future price" their projects, especially during bullish market sentiment.

As a resale condo owner, do you not "future price" your property when you want to sell it? Will you not tell your Buyers about the up-and-coming developments in Masterplan in your area, to convince them to pay a higher price for your property during negotiation? That, my friend, is also future-pricing.

Property prices has always been forward-looking. The best time to invest in Real Estate is always 10 years ago, when you are 10 years younger.

Having said that, there are still many gems left uncovered in today's market. I have recently helped my Buyer purchased a Freehold 3BR in RCR for less than $1m, or below $1000psf.

Should you need any further assistance in matters relating to property, please contact me at my mobile 9748 6305  . I will be happy to assess and share with you the possibilities for you and your partner in the current market.

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More
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  • AB
    In a buyers market, try future pricing the units and see how long it stays in the market. Just remember that sellers can ask any price they want, whether it gets sold or not is a different matter.
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