How To Identify A Lucrative Private Property For Investment in Singapore

Private property investment in Singapore is a profitable pursuit for both Singaporeans and foreigners. But how do you identify a lucrative property investment in Singapore? You could follow other property investors’ success stories and tips, or do proper research into property investment. We save you the hassle with our quick guide:

1. Work out the capital you are willing to set aside for the investment

Private property investment remains lucrative because you can invest long-term without short-term fluctuations. Property investment has, however, become more expensive due to the cooling measures implemented by the government. Therefore, it’s essential to consider how much you can set aside to make the purchase. Our private property buying guide discusses the costs involved.

2. Narrow down on properties

Core Central Region

The core central region is also known as the city or central area. If you’re looking for private property in the core central region of Singapore, you’d be pleased to know that it comprises 11 prime planning areas and is home to Singapore’s main pulse of the Central Business District. It is also Asia’s top shopping destination and is well served by major expressways.

Rest of Central Region 

Private properties in the rest of Singapore’s central region can draw in significant value for investment since it comprises various amenities sought after, like parks, gardens and other recreational spaces. Its location near the centre also makes it a popular investment spot. 

Outside Central Region

The rest of Singapore is also a lucrative playground for private property investment, which makes up three-quarters of the country. Whether you are looking for property developments in the east or west, there will be one you’d be pleased to sign off.

3. Study entry prices

It’s essential to be aware of the entry price of properties, and if it’s reasonable, the selling price will be lower than the property’s current value. For example, a property’s transaction average is $1,500 PSF (per square foot), and if it sells for $1,250 PSF, it has a sensible entry price. Investors should be mindful when sourcing buying property for sale in Singapore to not settle for more than its current value!

4. Research the location 

It’s crucial to research infrastructure and the location before you invest in private property in Singapore. Generally, Singapore’s property prices are closely connected to the government’s infrastructure strategy. The neighbourhood area also plays an essential role in determining your property’s rental and capital growth.

5. Calculate return on investment

Rental income can be a profitable return on your property investment. Rental yield is the money obtained from collecting rental income —the recapitulation of rental income earned in a year as a percentage of the property’s price. So if you purchased the property at $500,000 and rent it out for $5,000 a month, you will earn $60,000 a year, making your rental yield 12% [(60,000/500,000) x 100%].

Ultimately, if you have a higher rental yield, you will have a higher return on your property investment, which could help you repay your property loan.

Here’s to exciting property investment.

Staying up to date with new property developments and properties for sale in Singapore is the way to move forward and keep up with property investment trends, so you can be sure you are putting your money at the right place.

If you are looking for new properties to invest in, you can get first access to new property launches and developments in Singapore with New Launches Reviews. We are committed to bringing you quality, unbiased and the latest reviews on new property launches.

Scroll to Top