How to Spot an Investment-worthy Property in Singapore

It is a well-known fact that there are hundreds of both local and foreign millionaires in Singapore. Many of them are businessmen and investors who have invested in the Singapore real estate market. When it comes to property investment, Singapore is a great place to put your money in. 

The country’s housing market has remained lucrative despite the struggling global economy that has been caused by the COVID-19 pandemic. In fact, in 2020, Singapore’s private residential property index rose by 2.21%. Home prices have even increased to a point where the government stepped in to enforce policies to ensure that HDB flats remain affordable for citizens. 

For both local and foreign investors, real estate is still the best investment in Singapore as it is a stable form of investment that comes with numerous benefits too. For instance, if you choose the right property, you can passive cash flow by collecting rental, have excellent returns at the end of every year,

As a real estate investor, you can make money through rental income and appreciation of your property value. You can also generate profits from other activities that depend on your property. However, to get the most out of your investment, you need to ensure that you choose the right property. 

Here are a few factors to consider when looking for an investment-worthy property:

1. Tenure of Property – Freehold or 99-years

The tenure of property ranks rather high on priority for buyers and investors as it determines the amount of freedom owners have over the renovation and the potential sale of the property in future on top of how long one can own said property.

 Freehold properties owners have complete control over their house – free reign over renovation works, having pets and no time limit to the ownership. On the other hand, properties with a leasehold of 99 years are subjected to a list of rules and regulations when it comes to renovation works or potential sale of your estate to a private developer if your estate goes through en-bloc. 

Without a doubt, freehold properties that meet the following factors in this article tend to fetch a higher price during a sale but always be reminded that the value of a property is measured by a myriad of factors and not just its tenure.

2. Convenience and Location of Property

When looking for the best house to rent, Singaporeans typically prefer to live in mature estates where there are plenty of amenities and lesser ongoing construction work. This is because mature estates typically have better accessibility and more amenities such as convenient MRT stations, shopping malls, F&B options, and important services that make everyday life easier and more convenient. 

With a higher demand for units in a mature estate, the prices for such units increase as the supply decreases over the years. For example, BTOs in mature estates such as Bukit Merah, costs up to S$600,000 for a 4 room HDB and Woodlands (a non-mature estate) where a 5 room HDB fetches up to S$520,000

The rent yield in mature estates is also evidently higher than in non-mature estates where most amenities are not yet fully built or available.

3. Are there schools in the vicinity?

An investment-worthy property should ideally have good schools in the vicinity. This is because of the key benefits that tenants get when they live near their children’s schools. 

For example, most parents would be willing to pay extra to live near their children’s school for safety as their child commutes to school. They can also save on school bus expenditure if their child is able to walk to school from home.

The major advantage every parent looks for is the fact that their children will not need to be rushed out of the house, probably half asleep, when the school is just a few minutes away. The investor will also be assured that as long as the school remains within the vicinity, there will always be an increasing demand for the property from parents.

Having schools within the vicinity of a property will always appeal to a wide range of demographics, from married couples seeking to raise a family to large family households with school-going children. 

This is even more so if elite schools are within close proximity since the Ministry of Education has stated that children living within 1km of the school will have priority enrolment when applying for the school.

4. Will there be future developments in the estate?

The property you choose to invest in may not be situated in a mature estate but do take into consideration if the buyers will have potential infrastructure developments in the vicinity to look forward to in the near future. 

Such developments might include plans to expand the MRT into the area, or plans to construct shopping malls in the vicinity. Basically, look for indications that suggest that your property investment is located in a place with the potential to become a mature estate in the near future. 

Good property investment should always have most of the infrastructure developments buyers look for such as a new MRT station, shopping malls, schools, and recreational parks.

Let Home Property Agent Help You Sell Your Property

Once you have your eyes set on an HDB flat for investment, you can leave the purchasing part to a reliable property agent such as Home Property Agent. In fact, we can help you with the selling of your property in future as well. 

We are experienced in the Singapore real estate industry and understand your buyers better. We are able to sell your property at the best price and within the shortest time possible. 

Contact Home Property Agent for a free non-obligatory consultation today.

You are fully protected by our 100% Satisfaction-Guarantee! We only charge agent fees if we have successfully helped you sell or buy your HDB flat (only with your permission and agreement to the offer made by the buyer!) If we are unable to sell your HDB flat within 1 month, let us know and we will do our best to correct it! If you are still not satisfied then, you can terminate our services at no cost.

Start selling/buying your HDB flat with us today!


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