PERFORMANCE OF CONDOMINIUMS OF THE 70S AND 80S - A COMPARISON

Abstract

This study is carried out with a view to help potential investors, whether individual or corporate, while in search of real estate investment, particularly, in condominium type of housing. With the use of the three performance indicators, namely, the capital appreciation rate, the rental appreciation rate and the investment yield, any potential investor would be able to decide for himself what sort of residential submarket he should go into in view of lowest risk possible while comparing properties of similar yield. To limit the scope of this study, condominiums built in the 70s and 80s are chosen from the various condominium developments in the prime residential district of 9, 10 and 11. This will do away with the locational factor which is an utmost important consideration to be taken for any real estate investment. From the findings, it can be seen that despite the greater capital and rental appreciation rate obtained by the 70s condominiums, the risk involved is, nonetheless, higher than the 80s condominiums. The survey revealed the resident profile, the product attributes and their relative importance that potential investors or lessee will look for before they decide which type of condominiums to go for. From the analysis, the resident profile is quite different and their relative emphasis on the different product attributes also differs. In summary, the prime residential district under study is definitely a potential real estate haven whereby putting an investment there will guarantee a safe return in view of the existence of a growing number of expatriates in Singapore.