How Does Property Fare Against Common Investment Choices by Singaporeans in the Past 10 Years?

Updated: Mar 22


historical returns of property vs cpf vs bank savings fixed deposits

*Latest chart updates added at the bottom of article.


“History does not predict the future."

However, to ignore history is to ignore the lessons and experiences that come with them and so often foretells much of what is to come.


I preface this sharing with the quote above as recently i did a study on what the returns are for common investments and savings choices of Singaporeans over the last ten years.


The reason being, as a realtor, business owner, a property investor and a soon to be dad, i knew my time was getting more precious and scarce and i wanted to know how to make my money work the hardest for me so that i can put more eggs in THAT basket and step out of guesstimates, predictions, industry hype etc.


After all, forecasts from economists and so-called experts are wrong half the time.


So, instead of working forward and predicting what’s going to happen in the next decade, i thought let’s work backwards, give history a chance to educate us, and find out which common investment and savings choice gave the BEST returns.


Over the past 10 years 2007-2016. (Scroll to the bottom to see the latest moving 10 years comparison)


Property vs other investment returns over past 10 years Singapore

If you look at the table i have attached, you would find 10 forms of common vehicles in which locals hold our money in.


I did not cover the different stocks, derivatives, mutual funds, commodities, overseas properties etc as the possibilities would be endless but am open to adding them in, if they are considered common holdings by Singaporeans.


I have also not attached all my workings and calculations as that would greatly confuse most people.


But, i can share that in another post if requested.


Summary


To briefly summarise, the facts show that the Returns on Equity (The money you actually put in) of Property (Landed, Condos, ECs, HDBs) outperform most of the other manners of holding wealth, with the only exception of Gold outdoing Condos by a hair’s breadth.


It is not difficult to understand why as globally we are plagued with much uncertainty over the last decade.


I have also illustrated the real growth in value AFTER accounting for inflation eating away at our money as sadly, inflation is real and impossible to deflate (if you get it).


S$1 ten years ago is worth only $0.70 today and we feel it in every aspect of our lives – From buying a morning teh-o, paying our bills to property and car prices growth.

And we can even bet that S$1 today will see approximately the same fate in 10 years time.


Looking at property investments on av