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Thread: District Rankings (List)

  1. #1
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    Default District Rankings (List)

    https://stackedhomes.com/editorial/d...wGRhegqOST3cok

    We Ranked Every District By How Much They’ve Gained (Or Lost) – Here Are The Results

    #26 – D16 (Bedok/Upper East Coast/Siglap)

    Safe to say it’s a little disconcerting when that one area that holds most of your childhood memories ranks as the current lowest in the list. But I guess someone has to take the spot either way!

    Home to a diverse number of shopping malls and food outlets, District 16 currently ranks as the lowest appreciating district over the last 5 years at an alarming -18.66%.

    Price Movements: $1,286 average psf in January 2015 to $1,046 average psf in December 2019.

    #1 – D28 (Seletar/Yio Chu Kang)

    Prices in District 28 was the 2nd lowest in all the district backs in January 2015 at $888 psf.

    But with an outrageous 48.31% climb in half a decade, it now charts at $1,317 psf, making it the undisputed highest appreciator in all of Singapore’s districts.

  2. #2
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    Default Re: District Rankings (List)



    General Analysis
    High appreciation in places with promising developments
    This one’s a no-brainer.

    Demand (and hence prices) begin to rise for districts with new impending infrastructure, or even plenty of open, undeveloped space for that matter (the Seletar-half of D28 comes to mind).

    Yet it’s not just any infrastructure that contributes to possible appreciation uptrends. Some of the bigger ‘amenities’ would include:

    Public Transport Offerings (MRT/Bus Stations)
    Massive Employment Generators (Eg. Punggol Digital District)
    Upgrade to Communal/Medical Facilities (Clinics, Community Clubs etc.)
    Basically, an increase in convenience or a successful alteration/upgrade to an existing district favourite.

    Naturally, the impact of these amenities on demand will also differ from locale to locale, depending on its necessity and ‘population life-enhancement’ value.

    Buying into high quantum districts could result in high gain/loss
    As evident in Districts 2 (#25) and 7 (#3), we see how increased quantums mean more drastic differences in appreciation percentages.

    To illustrate, a 10% increase in a 3,000 psf district would leave us at 3,300 psf. Assuming we purchase a 1,000 square foot unit, that equals to a jump from 3 million to 3.3 million dollars.

    On the other hand, a 10% increase in a 1,000 psf district in a similar-sized unit would equal to a price rise from 1 million to 1.1 million dollars.

    That’s a $200,000 difference.

    Naturally, those who buy into ‘high quantumed districts’ usually have higher budgets and capitals to begin with, but as the saying goes “a little goes a long way”.

    In crux, don’t just look at the percentages, it is also important to look at the actual overall quantum in a particular development to determine the monetary extent of your gains/losses.

    1. Be wary of the high appreciators

    The first thing that many people do is rush into buying developments in ‘good appreciation trend’ districts.

    Now chances are, if everyone is buying units in these areas, you might already be too late. So before you join the crowd, here are a number of factors to consider:

    What is the ‘cause of appreciation’ in this district – Is it a singular limiting factor or a multitude of reasons with long-standing, widespread impact?
    At what stage is the demand/appreciation trend at – If the district has been rapidly appreciating for the past 5 years and demand is much lower now, maybe think twice about getting good appreciation returns if you enter the district’s market now.
    How many people have already got there before you – Depending on the above factors, demand can get filled very quickly. With price dips a common phenomenon after an initial price index hike, entering/exiting at the right time is always pivotal.
    As you can see, these are just some of the factors you should consider when looking into a high appreciation district for the sake of increased appreciation gains.

    In essence, invest very carefully in these scenarios only after getting a sufficient amount of experienced advice.

    2. Exiting at the right point

    This final point emphasises on the constant fluctuations of price trends in the real estate market.

    Hold on to a unit for too long, prices dip and you’ll find yourself waiting for the entire cycle to repeat. Sometimes they never do.

    Sell a unit too quickly and you’ll be kicking yourself for not holding on to it for a tad longer.

    We’ll avoid going too in-depth into price trends for now, but here are some tips that will help those looking to ‘flip’ their current/future properties for maximum appreciation value.

    A. Beat the ‘Endowment’ Effect

    If you haven’t already heard about it, the ‘endowment effect’ is a common scenario in which someone refuses to part with any of his/her possessions due to emotional bias.

    An incredibly valuable trade might be on the cards, but due to emotional attachment, the trade is almost never made.

    If you are looking for maximum appreciation from a unit, don’t be prey to it. Understand that the time has come to sell of your property and make the necessary arrangements.

    Understand your priorities and look forward to new adventures and brighter prospects.

    B. Plan Your Strategy in Advance, be Prepared For Change

    As the famous saying goes – ‘If you fail to plan, you plan to fail.’

    Speak with people you trust.

    Professionals or individuals who have had experience in the field. Whether your strategy is then selling your unit immediately upon SSD, or renting the unit out for a few years before a resale move, have it all planned even before you make your purchase.

    Of course, it isn’t the easiest thing, so note that this resonates mainly for those who are serious about gaining monetary value from the real estate market.

    Now the markets’ unpredictably often results in unforeseen opportunities/circumstances popping up along the way. Life might also throw you a curve ball in the meantime.

    At such points, it is important to re-evaluate if you can still work with the plan, or if minor/major adjustments should be made to your exit strategy.

    It won’t guarantee you complete success, but it sure as hell reduces the failure-rate come crunch-time.

    Final Word
    At the end of the day, there are a lot of existing and potential factors that go into determining appreciation trends.

    We’ve also seen both overnight millionaires and overnight bankruptcies in the past.

    Based off the unlikely latter scenario, it is therefore important to ascertain your budget/means before taking the plunge. Are you able to part with this amount of money if everything goes to sh*t?

    Based on that, you can then work your way into which districts will best suit your current capital/income levels.

    Only then, does the real fun begin. Countless condo visits, zoomed-in district analysis, price trend mind maps… the list goes on.

    In essence, source within your budget, plan wisely, be prepared for changes and then go make one hell of a mark.

    On that final note, I’ll leave you with a list of the 3 most affordable/exorbitant districts based off the statistics.

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