To all my clients/friends here in Singapore & offshore

To all my clients/friends here in Singapore & offshore

Just how do we make sense of turbulent markets all around us.  It is indeed scary that we see prices in Singapore real estate tumble from (using not a luxury but high-end condo to illustrate)  its high of $2000psf to current $1200psf in a year! We are now looking at prices retraced back to the 2006 levels.

However take heart from past patterns of real estate prices peaking in 1985, 1996, 2007 .. it tells you what goes down must come up again in a (about) 12-year cycle in and around 2017-2018.

What we need is more than a little bit of patience, and good savvy advice. So remember the following tips for real estate investment in 2009!

• Now is the best time to sell public-housing (HDB properties) in Singapore and upgrade to a private condo - to defy the norm for once you can actually sell high and buy low!
  

• Always buy private property in prime district 9/10/11 or near prime 15/16 where capital value appreciation is going to be 10X more in 2018 then in the other-lying areas - rather buy a smaller studio or 2RM in prime than a 3RM in outskirts!
    

• Consider buying your 1st investment property in prime district 9/10 in the next 6-12 months
  

• As you trade down, asset value drop & hence risk will be smaller. Bell curve demand distribution inherent means a property trading in the $1000-1500psf will drop less than one already in the $800-1000psf.  
  

• The best bargains presents itself in properties to TOP in 2009/2010! Sometimes even lower than resale properties in the same precinct.
  

• Finally where are the best condos and location to invest for both asset value growth and yield? To find out, join my ever-growing mailing list above .. (wink)