A Story Of A Singaporean’s Overseas Property Investment Gone Wrong (But Saved By The Law)
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Ryan J
- October 8, 2023
- 5 min read
5 min read
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.
In other serious property news…
My apologies for being slow this week, it’s due to Covid-related reasons; but here are some articles for your pleasure nonetheless:
- Here’s where to find the cheapest 4-room flats, that are still near an MRT station.
- Check out the upcoming BTO launch sites, coming up this October.
- People like to say if they had a million to put into property a few years ago, they’d all be tycoons by now. But let’s see how true that might actually be.
- Check out the shoebox units that have seen the best resale gains in previous years. Could it be time to sell while you’re ahead?
Weekly Sales Roundup (25 September – 01 October)
Top 5 Most Expensive New Sales (By Project)
| PROJECT NAME | PRICE S$ | AREA (SQFT) | $PSF | TENURE |
| MIDTOWN MODERN | $5,617,000 | 1808 | $3,106 | 99 yrs (2019) |
| TERRA HILL | $5,341,000 | 1894 | $2,819 | FH |
| THE CONTINUUM | $4,861,000 | 1690 | $2,876 | FH |
| PULLMAN RESIDENCES NEWTON | $4,425,300 | 1281 | $3,455 | FH |
| THE RESERVE RESIDENCES | $3,760,778 | 1625 | $2,314 | 99 yrs (2021) |
Top 5 Cheapest New Sales (By Project)
| PROJECT NAME | PRICE S$ | 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
My interesting links of the week:
– An interview of Donald Trump in 1980
You can watch the interview here for yourself, but I was stunned to see how his famous hair was almost the same even when he was 33 (although I’m not sure what I was expecting here).
It was also curious to me to see him branded as a real estate investor, as with all his recent shenanigans and stint as the president of the US, many have probably forgotten that he used to be in real estate.
You gotta admit, even back then, you can tell that he’s just… different.
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