Property Investment in Singapore
Ask almost anyone in Singapore what they think of property investment and they will tell you that it is a good way to get rich—as long as it is done properly. With a population density of 7,500 people per square km (and growing), Singapore is a crowded and land-scarce cosmopolitan city.
All the people in Singapore need a roof over their heads, but our supply of housing never catches up with our demand. Hence, the price of housing continually rises over time. The idea of property investment is to take advantage of the rising prices of housing over time—buy property early when they are cheaper, and sell it when the price of the property rises.
Of course, not every piece of property in Singapore will be a profitable investment. Like companies in the stock market, some properties will rise in value over time, some will stay the same, and the remaining will drop in value over time. To make a good investment in property, we need to know how to identify the properties that will appreciate over time.
A good way to identify properties that will appreciate over time is to first understand how property in Singapore is priced. Properties that have more demand are priced higher, because these properties offer a variety of conveniences to house owners:
- Nearby MRT stations offer fast and easy-to-access public transport.
- Nearby shopping centres and other amenities provide shopping and entertainment options.
- Nearby sport complexes and country clubs provide lifestyle options.
- How close the property is to town—the central part of Singapore where its business district and attractions are.
To earn from property investment, we need to find and buy properties that do not currently have these features and see if there are any future developments in the area that will add value to it. A good example of properties like this are the HDB apartments around Jurong East MRT Station. As shopping centres sprout up around the area and the MRT Station gets developed even further, the value of property around Jurong East will continue to rise as the area offers more and more conveniences to its owners.
To create a good business profit off property investment, building a defensively strong property portfolio is integral. The reason is simple—such portfolio will reap substantial capital gain and also stand resilient in the face of adversity.
Besides being near the centre of Singapore, Alex Residences is a stone’s throw away from Redhill MRT Station. Its excellent locality means that there will be constant stream of rental demand even in bad economic times. The rental demand comes from the working professionals in the Central Business District, as the property is only minutes away from it and the upcomng bio-medical hub at Buona Vista. People always say that location key in property investment, and Alex Residences will boast a great location in the future that few properties in Singapore can beat.