INVESTMENT YIELDS IN THE SINGAPORE REAL ESTATE MARKET, 1970

Abstract

It never occurs to anyone's mind that the topic chosen for the dissertation as originally conceived to follow up an earlier study into the "yields" attempted by Mr. Philip Motha in 196b (1), would deviate from its term of reference. In fact, at the outset, the approach for this dissertation was an attempt (on the guide-lines in the study made by Mr. Motha) at the yields for the various types and classes of property in Singapore prevailing in the year 1970 so as to enable comparisons to be made with the yields prevailing in 1965. This would obviously encourage further study in depth of the reasons underlying any differences that may be revealed in the yields over this five-year period. The "yield" would be no different from those understood in Mr. Motha's study as "not the realised or expost yield but the expected or anticipated rate of return necessary to attract capital to an investment" The essential data had to be extracted from the Property Tax pepartment. All doubts about obtaining the necessary data appeared to be solved when permission was given by the Acting Chief Assessor to include the "Address of Property" which he cautioned against mentioning in an earlier interview and discussion. The permission given was not without the conditions attached and it was later realised that such restrictions were imposed to frustrate any genuine effort to produce the dissertation. Attempts to obtain the necessary missing or misleading data were thwarted apparently to discourage the completion of this dissertation. It was then realised that recourse must necessarily be had to guesswork to complete the missing information. The alternative solution was to make the best use of the data so far obtained and remove the doubts in the relevant cases under study by visual inspection of the properties and making enquiries. The idea of "expected yield" to define the yield in this study was accepted by Mr. Motha who is in charge of this Project's dissertation and for which I wish to express my gratitude for his kind guidance and advice throughout. However certain classes of properties were omitted, not through ignorance, but due to the circumstances under which this project was undertaken. The economic background subsequent to 196b together with legislation affecting property are included in this dissertation to up-date the information relevant to the real estate market. The analysis of the "expected yields" is fully explained in the chapters following.