True Singapore Horror Story .. 
How someone “lost $233k” in 2 years due to lost opportunities

In 2017, I served a client (Mr Lim) in purchasing a HDB flat : a 5 room flat in the Bukit Panjang area. 

Upon reaching MOP in 2022, Mr Lim asked my opinion of whether to upgrade to a private condo,  to shift their funds into a better asset, or stay put. 

 

 

 

After applying my signature S.A.F.E.T.Y framework, their family shortlisted Affinity at Serangoon  as one of the top choices. (other alternatives were Garden Residences  & Terrasse ) 

At that time, the project was selling out and was around $1,5XX psf for a 3bedroom unit.

 

They were  eyeing this #11-20 unit at $1535 psf, $1.767m. 

 

Thorough discussions later, they decided not to go ahead, citing prices were too high.
I respected their decision and didn’t push further even though I felt it was quite waste; 

It was a good project, and I knew that OCR had great room to grow, and it was a decent project for consideration. 

—–

Following those events, Mr Lim attended many other seminars to explore various other avenues of properties like UK .. China.. Cambodia.. and even Princess Cove in Msia.. 😂

 

Long story short, he didn’t. 

 

Fast forward to 2024 .. 

 

He recently contacted me again, saying the family wants to revisit the idea of purchasing Affinity at Serangoon. Asking me how much would it cost now. 

 

I really dreaded delivering the following news to him…..

 

PSF had shot up to as high as $18xx psf, and remember we were looking at #11-20 at $1.767m?

Just in may 2024, #10-20 sold at a cool $2,000,000 price tag.

 

In just 2 years, it had shot up by $233k. 

——

 

He told me 

“never mind lah.. My HDB also got grow mah.  by $60k”  

 

😭😭😭😭

 

He is turning 55 the next year which is also when OA funds will be locked up into the BRS.. 

 

Thus he has since instructed me to go full steam ahead to sell his current property to help him transit into a better performing asset. 

 

(side track)

I run weekly 1 to 1 strategy sessions to share

1) My 5 step “S.A.F.E.T.Y” System that has successfully identified developments that appreciate by $324K-$525K, whether Resale or New Launch, while ensuring your risk is kept to a minimum. 

(Especially important during periods where prices are on the high side)

 

2) Property Investment Market Forecast to understand where the present opportunities are, where future opportunities are, and when to enter. 

 

3) Comprehensive Financial Calculations to shortlist healthy investments, so you have the necessary holding power to reduce risk, and increase success. 

If this may benefit you :

Click here for a free strategy session 🙂
Daniel Kok

ERA Real Estate Strategist

8100 7248

Here were the available choices for Mr Lim back then :

 

Terrasse (TOP 2014) 

 

In 2022, he could buy a 1,152sqft unit at $1,480,000(  1,285psf )

 

2 years later, 2023-2024 the upper end psf range is at $1440 psf = $1,658,880. 

 

If bought terrasse, GROSS profit potential was approximately ~$170k

— 

Garden Residences (TOP 2021)

 

The psf to pay if you entered during 2022 would be around $1800-1900 psf . 

Approximately $2.1m for 1119sqft.

 

In 2023-2024 the upper end psf range could fetch about $1990 psf for a 11XX sqft unit.

Approx $2.23m

 

If he had bought Garden Residences, the gross profit potential could be ~$100k ++

 

Applying My S.A.F.E.T.Y Framework

(To keep it short & sweet, I will just talk about 2 factors) 

Smart Entry Price:

– There was a unique opportunity at Affinity, something that was about 3 years younger than Garden Residences, yet at the same PSF ($15XX).

On hindsight many would think this was obvious but many still wouldn’t have the confidence to pull the trigger back then..

Entering at a Smart Entry Price will help you half of the battle. 
It ALSO determines how safe your entry is, plus how profitable your investment will be.

But be wary : Cheap DOES NOT always mean value for money. 

Flexibility on Exit:

– Demand :
Understand that Serangoon / Serangoon gardens has always been a popular place that people likes to reside in. 
Good no. of affluent people like to invest / stay in private properties in this area. 

D19 is also home to the largest cluster of Landed homes, transactions are high, there are plenty of potential downgraders in the future. 
Total no. of landed units are 12000 + here.

 

– HDB upgraders : 

— Directly in front of Affinity is an upcoming BTO , Serangoon North Vista. Completion estimated 2027, upgraders will start coming out 2032. Quite a while aways, but definitely a viable market pool.

— You also have plenty of potential upgraders coming from Punggol, Sengkang, Woodleigh, who will be able to purchase from 2024 to 2025. 
Total units are estimated 11,000. Not all will come here obviously, but the sheer size works in your favor. 

— Hougang.. Kovan.. Serangoon.. There are plenty of EA and EMs here in the 900k-$1.2m range as of 2024. Lots of money to be unlocked from this market segment as well. 

– Location

— Rosyth Pri , Zhonghua Pri within 1km

— Serangoon Nex, Serangoon Gardens, myVillage. Tons of great amenities within reach.

— Serangoon MRT, Serangoon North MRT, within short travelling distance, many bus options too (Unlike riverfront)

Serangoon North MRT ( Cross Island Line) is a significant transformation for the area, drastically improving connectivity from the already well connected interchange, Serangoon MRT. 

— Upcoming Polyclinic near Serangoon Nex

Just based on these pointers I believe you can see how little risk it was to enter at that  time. 
(Of course I wish he could have entered in the Early Bird Launch Stage where prices were the lowest.) 

Assuming Mr Lim bought Affinity in 2022, the opportunity was buying something brand new at great value, 

and approximate returns was easily $200k+ as shown earlier, while enjoying a wonderful place to live in.

 

This was a missed opportunity which I feel deeply about, from time to time I would reflect upon it, 
as my fault for not being able to communicate the value properly to Mr Lim.  He had missed out on such a good opportunity.

To help Home Buyers / Investors make better informed decisions for their real estate investments,

I run weekly 1 to 1 strategy sessions to share

1) My 5 step “S.A.F.E.T.Y” System that has successfully identified developments that appreciate by $324K-$525K, whether Resale or New Launch, while ensuring your risk is kept to a minimum. 

(Especially important during periods where prices are on the high side)

 

2) Property Investment Market Forecast to understand where the present opportunities are, where future opportunities are, and when to enter. 

 

3) Comprehensive Financial Calculations to shortlist healthy investments, so you have the necessary holding power to reduce risk, and increase success. 

 

Click here for a free strategy session 🙂

Daniel Kok

ERA Real Estate Strategist

8100 7248