RISK AND RETURN WITHIN 99 YEAR LEASEHOLD PRIVATE CONDOMINIUMS

Abstract

A potential owner-occupier of a private residential property is highly interested in the returns that can be derived from the property purchased as well as the risks involved. This is on top of the normal criteria of the suitability of the private housing in meeting the family's needs. Hence, this dissertation tries to seek out the risk and return involved in the 99-year leasehold private condominium market, particularly in the prime district and East Coast. The analysis done is from the viewpoint of an owner-occupier. The literature that has been reviewed in this study reveal that owner-occupied housing provides for both investment and consumption benefits. Real property assets also perform better in an investment portfolio, with private apartments and condominiums performing the best in Singapore. It is found that in Pennsylvania, USA the risk in house price appreciation in the single-family housing market is significantly related to the returns. However, this dissertation finds that only the prime residential market's returns are positively related to the risks. This study also discovers that investments in housing by an owner-occupier are highest in the prime district. This finding is established on a risk adjusted basis. In the prime district, Spring Grove emerges top while investments made in the Tanamera are found to be the best in East Coast.