Top 5 Best Alternative Music Venues in Singapore
Singapore, a vibrant and bustling city-state, is known for its diverse culture and thriving arts scene. The city's love for...
Read More
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 …
5 Most Common Property Investment Scams To Watch Out For In Singapore
Property investment scams are unfortunately prevalent in Singapore, and unsuspecting investors can fall victim to these scams, leading to significant...
Read More
Top 5 : Questions Should Investors Be Asking Before Investing In Singapore’s High-End Rental Market
Singapore's high-end rental market has been a hot topic of discussion among investors worldwide. With the city-state's robust economy, excellent...
Read More
Unseen Dangers of Putting Your Money in Upscale Freehold Properties in Singapore
TLDR Luxury freehold properties in Singapore may not always be the lucrative investment opportunities they appear to be. High-end properties...
Read More
Top 5 Reasons Why Singapore’s Luxury Property Market Is Booming – Expert Analysis!
Singapore's luxury property market has been experiencing a significant boom in recent years, attracting the attention of investors and high-net-worth...
Read More
Four Things to Avoid When Renting Out an HDB Flat
TLDR Renting out an HDB flat in Singapore can be a lucrative source of secondary income. Key considerations include adhering...
Read More
Discover the 3 Top Factors Impacting HDB Resale Valuation in Singapore: What Every Buyer Must Know!
TLDR The blog post discusses the increased demand for HDB resale flats and the impact on prices. It emphasizes the...
Read More
5 Things to do When You Go For A Property Viewing In Singapore
5 Things to do When You Go For A Property Viewing In Singapore Here are 5 things to keep in...
Read More
5 Impacts Of The Singapore Government’s Cooling Measures On Property Investing
The Singapore government has implemented several cooling measures over the years to regulate the property market and prevent it from...
Read More
The Advantages and Disadvantages of Purchasing an Auction Property in Singapore
TLDR When considering purchasing a property through auction in Singapore, remember that you can potentially get a great deal below...
Read More
Navigating the Singapore Property Market as a Foreign Investor: What You Need to Know
Singapore, a thriving hub of business and commerce in Southeast Asia, boasts a highly developed economy and a robust real...
Read More
What Will Happen When Your 99-Year Housing Lease Expires?
TLDR We delve into the challenges faced by Singaporeans with expiring 99-year housing leases. It explores the types of leases...
Read More
The Future Of Singapore Property Investing: 5 Trends To Watch Out For
The future of Singapore's property market is shaped by several emerging trends that reflect cautious optimism, enviable locations, and sociable...
Read More
Exploring Singapore: The Top 5 Surprising Facts You Never Knew
Singapore, a city-state in Southeast Asia, is known for its rich cultural heritage, diverse population, and vibrant food scene. This...
Read More
Top 5 Japanese Restaurants in Singapore
Singapore, a melting pot of diverse cultures and flavors, offers an incredible array of dining experiences for food lovers. Japanese...
Read More
The Best Time to Invest in Singapore’s Property Market: Timing is Everything
Investing in the property market is a significant decision that requires careful consideration and analysis. One crucial factor that determines...
Read More
Reasons Why En-Bloc Sales Are Expected to Remain Slow in 2025
TLDR From 2014 to 2024, the en-bloc market has faced challenges due to fluctuating cooling measures and a shift from...
Read More
When to Strike Gold: The Ultimate Guide to Selling Your House in Singapore!
TLDR When deciding the best time to sell your property, consider various factors such as market trends, financial goals, and...
Read More
Freehold Properties vs Leasehold Properties: Which is Better?
TLDR When it comes to property investments in Singapore, understanding the differences between leasehold and freehold properties is crucial. This...
Read More
6 Unexpected Property Warning Signs That Can Be Negative for Some, But Beneficial for Others
TLDR When considering property preferences, what may appear as a disadvantage to some buyers could be a unique opportunity for...
Read More
