CHOOSING THE RIGHT PROPERTY
When choosing to buy a landed property versus an apartment, there is no clear winner in whether one is better than another. Advantages largely depend on an individual buyer’s criteria, with many buyers today looking to purchase multiple properties in Australia
When buying an apartment, investors looking to make a profit should take into consideration whether there is an oversaturation of apartment supply in the housing property scene. Apartments can provide a stable and high rental yield, providing desirable perks to residents looking for a certain lifestyle. Karen Chia provides an example of one of their properties – Oasis by Crown Group – that can provide a gross return of five to six per cent per annum for rentals. “I believe that more people are opting for the metropolitan lifestyle whereby they want the convenience and ease to transport, shopping centres, schools, workplaces all within reach,” says Chia. “That is why we see more buyers choosing apartments in strategic locations. We also see the older generation that wants to downsize but not downgrade. They still want the quality and luxury developments and easy access to amenities and facilities.”
While many Singaporean investors have been buying apartments, landed properties have been proven to yield returns as well. As landed properties tend to attain higher capital appreciation, owners can make more money from selling a house than an apartment. “As the old saying goes, we are not making more land. Therefore, land prices rise, as does our population and demand for property, and apartment building prices depreciate over the years,” attests Savas.