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 …

All Blog Posts Opinion

5 Reasons Why You Should Consider Hiring an Agent Instead of DIY-ing It

Jayson Ang – June 9, 2023 –

TLDR Understanding the complexities of the real estate market and transactions can be overwhelming. Enlisting the help of a real...

Mandarin Top 5

Top 5 Factors : Location More Important Than Freehold Status?

Jayson Ang – March 3, 2025 –

When it comes to purchasing a property, there are numerous factors that potential buyers need to consider. While the debate...

Mandarin Top 5

Top 5 Factors: Singapore Property Market: Attractive Investment Opportunity Despite Cooling Measures

Jayson Ang – March 29, 2025 –

The Singapore property market has always been a popular investment choice for both local and foreign investors, thanks to its...

Mandarin Top 5

5 Tips : How To Invest In Singapore Property Without Losing Sleep Over It

Jayson Ang – June 18, 2024 –

Investing in Singapore's property market can be a lucrative venture, but it's important to approach it with caution and a...

All Opinion

Should We Reconsider the ABSD Rates?

Jayson Ang – January 5, 2025 –

TLDR We explore the need to reevaluate the current Additional Buyer's Stamp Duty (ABSD) rates in Singapore, considering their impact...

All Reports

Transaction Volumes Remained Subdued Due To The Dearth Of Inventory In Q4 2022

Jayson Ang – March 27, 2023 –

TLDR The Urban Redevelopment Authority (URA) Flash Estimates for Q4 2022 show a 0.1% increase in non-landed private home prices...

Mandarin Top 5

5 Reasons Why Condos Are The Best Real Estate Investment in Singapore

Jayson Ang – March 25, 2024 –

Investing in a condo in Singapore is a popular choice for both locals and foreigners. Condominiums offer a range of...

Mandarin Top 5

5 Cons of Buying a New Development

Jayson Ang – March 4, 2024 –

Luxury properties in Districts 9 and 10 of Singapore are highly coveted, and for good reason. From stunning views and...

Mandarin Top 5

Top 5 Coffee Shops in Singapore for Coffee Lovers

Jayson Ang – August 17, 2024 –

Singapore, a bustling city-state known for its diverse culture and vibrant food scene, has also become a haven for coffee...

All Buying Tips Opinion

Say Goodbye to “Sell One, Buy Two” Approach in 2024

Jayson Ang – June 24, 2024 –

TLDR Summary: The "Sell One, Buy Two" real estate tactic, popularized in 2016-2017, involves selling a property and buying two...

Mandarin Top 5

Exploring Singapore: The Top 5 Surprising Facts You Never Knew

Jayson Ang – March 13, 2025 –

Singapore, a city-state in Southeast Asia, is known for its rich cultural heritage, diverse population, and vibrant food scene. This...

Mandarin Top 5

Top 5 Seafood Restaurants in Singapore

Jayson Ang – April 3, 2024 –

Singapore, a melting pot of cultures and culinary delights, is well-known for its diverse food scene. With its strategic location...

All Buying Tips Top List

Finding the Perfect Match: Top 20 : A Guide to Choosing the Best Property Agent in Singapore

Jayson Ang – December 17, 2022 –

TLDR When it comes to buying or selling real estate in Singapore, having a professional and knowledgeable property agent is...

All Opinion

“I Kept My Condo Empty for 7 Years” – Here’s What Singaporeans Living Overseas Do With Their Properties Back Home

Jayson Ang – February 14, 2025 –

TLDR In today's global workforce, many Singaporeans find themselves working abroad, raising questions about the management of their local properties....

Mandarin Top 5

5 Impacts Of The Singapore-Malaysia High-Speed Rail On The Property Market

Jayson Ang – June 10, 2024 –

The proposed Singapore-Malaysia High-Speed Rail (HSR) is a joint project between the two countries that aims to improve connectivity and...

Mandarin Top 5

Top 5 : Key Reasons to Invest in Industrial Property in Singapore

Jayson Ang – February 15, 2025 –

Singapore, a small yet densely populated country, has emerged as a significant player in the global industrial property market. Its...

All Blog Posts

Singapore Property Swapper

Jayson Ang – December 7, 2022 –

https://www.youtube.com/watch?v=B1NTnjxDPy4 Jayson Ang, also known as the Singapore Property Swapper, is a certified Propnex agent and top 1% producer who...