Today in the world of information overload, data is only a waste if one does not know what to make out of it. Everyone knows how transparent Singapore is as a nation and government releases plenty of information every year hoping to empower buyers make better buying decision. Data science only start picking up in recent times with major MNC like Facebook, google being penalized for overexploiting sensitive user data . Ironically unlike most countries where transparent data are not readily available, the singapore government gives you all the data and information almost free of charge, at least most of it. I decided research and dive deeper by putting up all the past recent best performing condos and the worst ones to see if there are interesting trend and most importantly, how we can take advantage of these data.

Best performing condo that recently TOP
Worst Performing condo for the past 5 years

I only factor in the most recent TOP condo for the top performing category because from a investor’s perspective, its always best to make the most amount of money in the least amount of time . Whereas for the worst performing category, i decided its only fair to go longer of at least past 5 years to see which are the worst ones that is still underperfoming despite the longer time frame given.

Breakdown Analysis

The 5 top perfoming condo has similar trend

  1. All leasehold projects
  2. 4/5 are OCR projects (Outer core region)
  3. Low average price
  4. Big development size of of at least 700
  5. High rental volume
  6. 2/5 is near MRT(500m)
  7. Reputable developer

The 5 worst perfoming condo

  1. 4/5 are freehold projects
  2. 3/5 are centrally located with 2 in CCR (core central region)
  3. Higher average price
  4. Small development size less than 150 units
  5. 3/5 is within 500m from MRT
  6. Smaller developer
  7. Less desirable areas

The best perfoming condos are all leasehold projects located mainly in outer core region supported by mass market demands and upgraders. The lower entry price is attractive as it does allows room for future appreciation and easier for potential buyers to stomach. Having a big development size makes sense because one of the reasons for price appreciation is you need transaction volumes. If no one is selling in a development means no movement in price thus having a big development helps. I always preach that having a project near MRT is not an important factor for capital appreciation because i have seen most of the time , developer would have already price in MRT factor into the price. From this studies seeing only 2 out of 5 is within 500m from mrt confirms this. High park residence is beside a LRT though but its so middle of nowhere that you can consider it on a world of its own.

 

The worst performing 5 we have 4 out of 5 are freehold projects. We do see that they are all over singapore with 2 in the CCR (core central region). Most importanly most of them lies in areas of less desirability or poor perfoming areas. Areas like Balestier, Selegie , Upper bukit timah. Singapore is very interesting. It has 28 districts but many consumers are all aware that all 28 districts performs very differently and within districts itself, there are different zones and each zones performs differently as well. To understand the perfomance area is another long topic but feel free to get in touch with me if these interest you. We continue and realise most are small developments as well. 3/5 is located near MRT, i believe the developer would have already price in the MRT factor and sold at a higher profit margin.

 

Conclusion

I like to clarify the purpose on this research is to identify if there are any trends or factors that compliments a profitable investment but by all means it is not completely a foolproof cheatsheet that guarantees a sure win investment.

Do note smaller developments are also profitable as well but it does take a longer period of time . If you are someone who is buying for homestay and enjoy exclusiveness, do by all means go for a smaller development if this is what you fancy. For example in district 9, 11 which consist of river valley, newton and novena area where 80% are make out of smaller developments, most of them have very good capital appreciation but with a longer time frame which usually ride on economy’s inflation rate. This studies above is to identify the best performing condos in the least amount of time which is what investors will favour.

URA Masterplan

 

Additional points i like to add on based on my experiences, do note that transformation will also certainly helps with the potential of a development. The Singapore government releases future masterplan every 5 years and concept plan every 10 years that will guide the future development of Singapore. There is a lot of information you can learn just studying the Masterplan on URA for your own research.

Other factors like developer’s margin, entry price, unit selection and X factors of a development is also very critical in planning a good purchase. Free feel to get in touch with us if you like to understand more on these trade secrets before planning your next purchase.

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