A story of a Singaporean's overseas property investment gone wrong (but saved by the law)

Sellers at property seminars are more accountable than many would suspect.

One of the criticisms I tend to hear about property seminars - both from investors and local realtors — is that there's a lack of accountability.

Caveat emptor applies, and if you get sold a dud at a seminar, the seller gets off scott-free. Or at least, that's the consequence most people imagine. But this week, we learned that's not quite the case. 

A doctor in Singapore has successfully sued a property advisor, over a hotel investment in the UK. Said doctor sank around $100,000 into a double-room, for the Tillington Hotel; the expectation was for returns of seven per cent in the first year, to about 14 per cent by the sixth or seventh year; at that point investors might allegedly exit the project and sell their investments for twice the invested sum. 

In June 2021, the hotel was sold at a loss, and the doctor received £3,949 (we're not sure what exactly it was worth in SGD at the time.) He was able to claim damages in the amount of over $84,989; although the report says he wasn't challenged.

(Bonus tip for my readers: hospitality-related properties, like hotels, can be among the most high-risk properties. It's possible for a hotel to run at a loss for, say, nine months out of the year, only being profitable during narrow "travel season" windows; sometimes a hotel may need to make all its profit in those brief periods or go bust. Not always the case of course, but worth checking before you buy.) 

Perhaps it's time we took all this further though. With ABSD rates at an all-time high, property investors are going to seek alternatives. That's going to mean overseas properties (everyone is looking at Japan now), as well as non-residential properties (hotels, industrial spaces, malls, etc.) And after seeing so many cooling measures, I know one thing for sure:

Cooling measures make seminars pop up like mushrooms after rain.

It's frustrating to those with legitimate seminars, because now they get drowned out. Especially because the legit ones tend to be far less dramatic in their claims, and are thus overlooked. Even I would worry about holding seminars now, given the reputation the space might develop.

Nevertheless, it's heartening to see that there is some recourse for those who've been in such situations, but let's not solely rely on legal redress to protect our interests.

Dive deep, research diligently, and always prioritise understanding over allure. Remember: in the realm of property investment (or any investment, for that matter), if something sounds too good to be true, it probably is. 

Meanwhile, it may be time to visit the URA building to see the new draft Master Plan

From the Greater Southern Waterfront, to the redevelopment plans for Turf City, there's quite a big change that will come up in the near future. 

The first is the increasing number of homes in central areas; and models like Prime housing are letting young couples move into areas that, previously, were unaffordable. Then there's changes to deal with rising temperatures and the sea level, like the Long Island Project that will completely block my beautiful sea view. 

This is what I get for using so much plastic. Now I get to stare at someone's undergarments hanging in their service yard or something, instead of my beautiful East Coast Beach with its ships, sun, sand, and oil slick. 

In all seriousness though, knowing what's going to happen in the URA Master Plan is great to help you in your property journey. While the new possible updates aren't fully set in stone yet, having a peek at them provides valuable insights into the future direction of Singapore's urban planning. 

As property enthusiasts or potential investors, staying ahead of the curve means understanding the government's long-term vision and planning accordingly. Whether you're lamenting a lost view or celebrating a potential appreciation in property value, it's undeniable that change is the only constant. 

Weekly sales roundup (Sept 25 – Oct 1)

Top 5 most expensive new sales (by project)

Top 5 cheapest new sales (by project)

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
THE LAKEGARDEN RESIDENCES	$1,249,900	592	$2,111	99 yrs (2023)
NORTH GAIA	$1,301,000	1033	$1,259	99 yrs (2021)
THE ARDEN	$1,330,000	721	$1,844	99 yrs (1969)
FORETT AT BUKIT TIMAH	$1,355,000	570	$2,375	FH
PROVENCE RESIDENCE	$1,379,000	926	$1,490	99 yrs (2020)

Top 5 most expensive resale

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
GOODWOOD RESIDENCE	$32,000,000	10710	$2,988	FH
BOTANIKA	$5,200,000	2497	$2,082	FH
THE WATERSIDE	$4,230,000	2400	$1,762	FH
SEASIDE RESIDENCES	$4,060,000	1679	$2,418	99 yrs (2016)
N.A.	$3,780,000	1798	$2,103	FH

Top 5 cheapest resale

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
N.A.	$440,000	1539	$286	99 yrs (1953)
THE GARDEN RESIDENCES	$780,000	474	$1,647	99 yrs (2017)
GRANDEUR PARK RESIDENCES	$784,000	420	$1,868	99 yrs (2016)
SKY GREEN	$788,888	441	$1,788	FH
EUHABITAT	$790,000	560	$1,411	99 yrs (2010)

Top 5 biggest winners

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	RETURNS	HOLDING PERIOD
GOODWOOD RESIDENCE	$32,000,000	10710	$2,988	$16,400,000	9 Years
BOTANIKA	$5,200,000	2497	$2,082	$2,618,000	16 Years
AMARYLLIS VILLE	$3,753,000	1991	$1,885	$1,803,000	14 Years
THE SPRINGBLOOM	$2,400,000	1647	$1,457	$1,680,868	25 Years
DOVER PARKVIEW	$2,668,000	2228	$1,197	$1,488,000	17 Years

Top 5 biggest losers

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	RETURNS	HOLDING PERIOD
MARINA BAY SUITES	$3,150,000	1615	$1,951	-$655,000	13 Years
THE LAURELS	$3,600,000	1313	$2,741	-$538,000	13 Years
THE COAST AT SENTOSA COVE	$3,650,000	2562	$1,425	-$395,000	16 Years
EON SHENTON	$1,358,888	689	$1,973	-$294,312	11 Years
KINGSFORD WATERBAY	$1,070,000	850	$1,258	-$99,000	5 Years

Transaction breakdown

ALSO READ: Thinking of investing in Australia? We spoke to an Australian property developer to find out the insider news

This article was first published in Stackedhomes.