Your search results

3 Winning Strategies for Skyrocketing Your Property Market Profits (Including Real-Life Success Stories)

Posted by Jayson Ang on August 21, 2024

| All, Buying Tips, Opinion, Selling Tips

| 0

TLDR

In the dynamic property market of Singapore, maximizing profit is key for sellers and investors. Three essential strategies stand out: First-Mover Advantage, where early investment reaps substantial gains; Entry Price, securing a lower price than current value for potential returns; and Exit Strategy, planning for optimal profits upon resale. Real-life examples like Riversails vs. Rio Vista and Kovan Melody vs. Kovan Regency demonstrate the impact of these strategies, showcasing significant disparities in profits. By mastering these tactics, individuals can navigate the competitive real estate landscape and achieve lucrative results.

Amidst the ever-changing landscape of the property market, the quest for maximizing profit reigns supreme for both home sellers and investors. Whether seeking to capitalize on soaring property values or secure a lucrative investment, strategic tactics are key to triumphing in this cutthroat real estate realm.

Join us as we unveil three crucial elements that can catapult your earnings and capitalize on market trends. Backed by real-life success stories and expert research, these proven strategies have the potential to yield staggering profits of up to S$500,000.

Current Market Trends

Before taking the plunge into the ever-changing currents of the market, it is imperative to grasp its past and present trajectory. Reflecting on the period spanning from 2013 to 2017, we bore witness to a significant 11.6% decline in prices due to potent cooling measures implemented at the time. Fast forward to 2023, and we find ourselves riding yet another wave of surging prices, albeit with hints of sluggish growth following a peak in 2021 and 2022.

But why should this catch your attention?

Well, a slowdown in the momentum of market growth is like a red flag in the ocean, indicating a possible decline in demand for housing. This could result in reduced offers on home listings and a dip in prices. For those on the lookout for a dream home, this could be the perfect opportunity to snag a deal at a more affordable price and without the fierce competition typically seen in the housing market.

Strategy #1: The First-Mover Advantage

To achieve the highest potential for financial growth, one must embrace the concept of “first mover advantage” when strategizing for maximum capital appreciation. This crucial element involves being among the pioneering buyers of a new project, like a luxurious condominium, which can greatly amplify future gains.

Case study: Riversails vs. Rio Vista

Let us embark on a comparison journey between two prominent projects: the renowned Riversails, which made its debut in 2012, and the evergreen Rio Vista, which first graced the district in 2001. Both stunning properties, mere minutes apart from each other, and developed by esteemed firms.

But for those who had the foresight to invest in a Riversails condo during a market lull in 2013, then sold it after the Minimum Occupation Period (MOP) of five years, were delighted to witness a profitable gain of S$169 per square foot (psf), resulting in a substantial 19.45% capital appreciation.

In contrast, unfortunate sellers at Rio Vista during the same period faced a staggering loss of S$124 psf, equivalent to a disappointing 13.89% decrease in value.

This stark contrast can be attributed to the fact that since Rio Vista’s inception in 2001, initial buyers had most likely sold their properties after the MOP, already reaping the rewards of any initial capital appreciation. This left minimal room for subsequent buyers to capitalize on.

Such a trend is particularly evident in developments where early purchasers enjoy significant capital gains during the property’s infancy, creating a noticeable gap in resale prices between the first and subsequent owners.

Property	Original purchase price for 3-room condo	Resale price	Profit/Loss
Riversails	S$963,721	S$1,151,142	+ S$187,421
Rio Vista	S$990,337	S$852,821	– S$137,516

Combining the figures, imagine a first-time homebuyer who secured a 3-bedroom condo (1,109 sqft) in the sought-after Riversails development for S$963,721. After selling it for an impressive S$1,151,142, they would have pocketed a whopping S$187,421 profit. In contrast, a second buyer’s similar unit in the neighboring Rio Vista only fetched S$852,821 upon resale, resulting in a significant loss of S$137,516 – an amount large enough to purchase a brand new car.

Case study: Kovan Melody vs Kovan Regency

Let’s delve into the intriguing case study of Kovan Regency and Kovan Melody – two adjacent residential developments with striking similarities. Nestled just a stone’s throw away from each other, both properties boast prime location and top-notch amenities near the coveted Kovan MRT station. However, when it comes to price growth, Kovan Regency takes the lead with a staggering surge, leaving Kovan Melody in its dust.

In the span of five years, from 2013 to 2018, Kovan Regency flaunted a remarkable 26.08% profit for its first movers. On the other hand, Kovan Melody’s second buyers barely scraped a measly 0.27% gain. To paint a clearer picture, let’s focus on a luxurious 3-bedroom unit in Kovan Regency, spanning a lavish 1,130 square feet. The initial purchase price for the first buyer would have been S$1,152,600. Fast forward five years, and the property would have fetched a staggering S$1,286 per square foot, raking in an impressive profit of S$300,000.

Now, here’s the real question – would you rather be the first owner basking in the S$300k profit or be the second homeowner paying a similar amount? The answer seems crystal clear.

Strategy #2: Entry Price

Not only have my clients’ profit margins been significantly boosted by an impressive S$300K to S$400K, but there are two additional crucial factors that deserve recognition for this success. The first, being the entry price, serves as a crucial foundation for minimizing risks and maximizing returns in their property investments. A shrewd investor always secures a lower entry price than the property’s current value, paving the way for potential lucrative capital gains.

Case Study: The Florence Residences

The Florence Residence, formerly known as Florence Regency, stands as a prime example of the immense impact of initial purchase price. After being acquired en bloc in 2017 and transformed into The Florence Residences, this gem hit the market in 2019 with a breakeven price of S$1,365 per square foot. However, with the market plagued by soaring prices, exorbitant interest rates of 2.6%, and the aftermath of cooling measures, only 54 units were sold on the launch day.

But for those savvy buyers who snagged a unit at the breakeven price during the initial launch, their foresight paid off. As subsequent years saw the offer disappear and market conditions change, these early birds benefited from lower entry prices, leading to striking disparities in profits between them and later buyers.

For instance, take units of the same size (915 sqft) purchased in 2019 versus 2021. Those who seized the opportunity in 2019 paid a mere S$1,232,000, while their counterparts in 2021 shelled out a hefty S$1,640,000 to S$1,719,000 for the exact same unit. That’s almost half a million dollars in savings, underscoring the importance of buying close to developer breakeven levels for maximizing potential profits.

With such significant gains under their belt, those who were wise enough to secure their units at lower entry prices in 2019 are now primed to level up and invest in their next property venture.

Strategy #3: Exit Strategy

In the world of real estate investment, securing the ideal entry price is only half the battle. Your exit strategy plays a crucial role in elevating profits to their fullest potential. By meticulously plotting your departure, you can guarantee a lucrative return on your investment when it’s time to bid farewell to your property.

Case Study: The Florence Residences

With the upcoming announcement of the future interchange at Hougang MRT, the Cross Island Line (CRL) is set to bring a golden opportunity for unit holders at Florence Residences.

This new CRL connection will link bustling hubs such as Jurong District, Changi, and Punggol, paving the way for an unprecedented boost in convenience for residents in the area. And with its prime location near the future Cross Island Line MRT entrance, Florence Residences is poised to reap the rewards.

As connectivity and accessibility are expected to skyrocket, it’s no surprise that demand and property prices will follow suit. In fact, neighboring newly MOP-ed 4-room HDBs are already commanding an average price of S$700,000, while 5-room HDBs are selling for an average of S$850,000. These figures are a clear indication that Florence Residences will be highly sought after among potential buyers, especially upon its TOP this year.

Therefore, for those looking to capitalize on this heightened demand and maximize profits from their unit at The Florence Residences, now is the perfect time to make your move. Don’t miss out on this lucrative opportunity, as it may just be the key to a successful exit strategy.

Wrapping up

Gain an edge in Singapore’s thriving property market by mastering three crucial tactics: being the first to strike, analyzing entry prices, and planning a smooth exit. Whether you’re selling or investing, these strategic moves guarantee optimal profits in the ever-evolving real estate realm.

When it comes to purchasing property, safety and prosperity go hand in hand. Let your financial aspirations soar with the implementation of savvy strategies tailored to your success in today’s cutthroat market. After all, with the right approach, property ownership is not just a dream, but a lucrative reality.

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …

Mandarin Top 5

Discover the Best Breakfast in Singapore: Top 5 Must-Try Spots!

Jayson Ang – February 28, 2024 –

Trying out some of the best breakfast places, I've put together a list of the top 5 must-try breakfast spots...

All Blog Posts

HDB Market Outlook 2023

Jayson Ang – January 8, 2023 –

TLDR: Understanding the HDB Market Outlook 2023 The HDB resale market showed resilience in 2022, with significant growth in sales...

All Opinion Reports

Is the Dream of Homeownership Becoming a Steeper Climb?

Jayson Ang – December 6, 2023 –

TLDR The article discusses the evolving trends in the Singaporean real estate market, focusing on the affordability and accessibility of...

All Blog Posts Buying Tips

What Hidden Costs Are There When Selling Your House?

Jayson Ang – July 7, 2023 –

TLDR When selling your house, be prepared to cover expenses such as outstanding home loans, legal fees, property agent commissions,...

All Buying Tips

4 Fresh Trends among Young Homebuyers Could Shake Things up in Singapore’s Real Estate Scene

Jayson Ang – March 18, 2024 –

TLDR Younger generation in Singapore is reshaping house hunting by showing a preference for quality of life over location. Millennials...

All Buying Tips

Transforming Your Home Loan Situation with Rate Cuts

Jayson Ang – September 6, 2024 –

TLDR When comparing fixed and floating mortgage rates, the present fixed rate of 3% is favorable, but predictions hint at...

All Buying Tips

Why It’s Not Financially Sensible to Pay Off Your HDB Flat Home Loan in Advance

Jayson Ang – April 29, 2024 –

TLDR When deciding whether to repay your HDB flat loan early, consider the limitations of not being able to obtain...

Mandarin Top 5

Experience The Best Of Southeast Asia: 5 Must-See Destinations After Singapore

Jayson Ang – February 22, 2024 –

Singapore is a great starting point for travelers looking to explore the region. From Singapore, there are many great destinations...

Mandarin Top 5

5 Most Common Property Investment Scams To Watch Out For In Singapore

Jayson Ang – June 12, 2024 –

Property investment scams are unfortunately prevalent in Singapore, and unsuspecting investors can fall victim to these scams, leading to significant...

Mandarin Top 5

The 5 Secrets To Successful Singapore Property Investing Revealed

Jayson Ang – July 4, 2024 –

The vibrant property market in Singapore has attracted numerous investors and speculators looking to profit from the nation's thriving conditions....

All Buying Tips

Downpayment For Condo: How Much Do First-Timers Need In Singapore?

Jayson Ang – March 12, 2024 –

TLDR The blog post delves into the complexities of condo downpayments in Singapore in light of the impact of Covid-19...

Mandarin Top 5

5 Resources That Can Help You Find Your Dream Home In Singapore

Jayson Ang – March 12, 2024 –

It's 五新房产, Finding your dream home can be a daunting task, but with the right resources, it can be a...

Mandarin Top 5

Top 5 Live Music Venues in Singapore

Jayson Ang – May 20, 2024 –

Singapore, a vibrant and multicultural city-state, is well-known for its diverse food scene, stunning architecture, and bustling shopping districts. However,...

All Blog Posts Buying Tips

An Essential Guide to Buying a Home in Singapore 2023

Jayson Ang – January 17, 2023 –

TLDR When navigating the complexities of purchasing a property in Singapore, ensure you meet eligibility criteria, consider affordability factors, and...