Real-Properties.com

In the last few years, we see Singapore real estate prices going up. For a while optimism is on the forefront as we expect the values of our homes to go up as well. Some of us were approached by anxious and keen real estate agents who want to sell our “millions-dollars” home for us. Yes, it would seem a good deal too if you intend to migrate to Australia, buy a couple of farms and become a farmer there after you sell your home. With that kind of money, it could last a life time in some remote parts of the planet.

But, seriously are prices really what they claimed to be in Singapore?

There are means to check for prices without having to pay for the services of a third party. The most reliable source for private property transactions is gathered from the URA’s website. It shows the prices of caveats lodged on the titles of the properties. A caveat is “a legal document lodged with the Singapore Land Authority by a purchaser to protect his/her interests after an option to purchase is exercised or a Sales & Purchase Agreement is signed” –URA.

Caveats are fairly accurate measures of home prices as they formed the determinants of values adopted by local valuers and appraisers. A friend brought a 1,050 sqft unit in Sunrise Gardens 7 years ago at $500K. A check on caveat prices for a similar sized unit in the same development recently shows $560K. A $60K profit may seem attractive in the first instance. However, if a mortgage is taken out on the property, say $300k for 25 years, $60K is barely enough to cover the loan interest not to mention other expenses. So before you commit your life savings into your dream home or have any doubts about the worth of your private home, do a localized search on the prices of similar properties in the area. Location rules.