4 Important Entry Signals That Will Greatly Improve Your Property Investment Returns (2026)
- Stuart Chng
- Dec 17, 2025
- 8 min read
Updated: Dec 17, 2025
Sound property wealth planning advice plays a crucial role in maximising investment performance while keeping costs under control.
(This article is adapted from my intensive three-day real estate programme, the Advisory Sales Masterclass, designed to equip both investors and agents with the skills to achieve strong outcomes in property investing.)
Foreword:
Since early 2017, the Singapore property market has seen a strong resurgence of interest from both institutional players and private investors.
This renewed activity comes as little surprise. Following several years of subdued movement due to government cooling measures—during which many investors explored overseas opportunities—the accumulated demand has now returned forcefully.
For first-time investors in particular, it is essential to clearly understand why property is chosen as an investment vehicle over alternatives such as equities or fixed-income products.
Like all asset classes, real estate operates in cycles.
However, what sets Singapore property apart is its exceptional long-term return on equity compared to many other investment instruments.
This resilience can largely be attributed to the strength of the Singapore dollar, the availability of leverage, and Singapore’s continued appeal to international investors—not only as a location, but as a distinct asset class.
As a Singaporean and long-time observer of the property market, I have consistently encouraged friends to prioritise local investments despite the allure of overseas real estate.
One key reason is inflation protection. Inflation, much like taxes, is inevitable. Property ownership allows investors to preserve and grow wealth over time through the compounding effect of inflation on real assets.
Albert Einstein famously said, “Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.”
This article focuses on foundational principles for those starting out. Before beginning your property search, it is vital to run through the checklist below.
1. Financial Readiness
Before evaluating any property, consult a property wealth planner to assess your financial position, including the required cash and CPF outlay.
Engaging an experienced third party can help you avoid costly beginner mistakes that may significantly delay your financial goals.
A competent advisor will calculate your minimum cash and CPF requirements for the down payment, stamp duties, legal fees, and incidental costs. More importantly, they should help map out a long-term acquisition strategy as your portfolio grows.
2. Loan Eligibility
Under the current Total Debt Servicing Ratio (TDSR) framework, understanding your maximum borrowing capacity is critical to avoid unpleasant surprises after placing a deposit.
For this reason, checking your loan eligibility early—either with a property wealth planner or a mortgage specialist—should be a top priority.
3. Manner of Holding
If you already own an HDB flat or private property and are planning to acquire a second asset, professional advice is essential.
A property wealth planner can help you structure ownership in a way that optimises tax efficiency (which can be substantial) while expanding your financing options.
This step is especially important for investors aiming to scale their portfolios, where access to higher leverage and lower costs becomes increasingly significant.
4. Investment Objective and Time Horizon
Having clarity on your investment timeline and goals allows you to focus on the right market segments, saving both time and effort.
For example:
Income-focused investors should prioritise locations with strong tenant demand and low vacancy rates.
Short-term investors aiming to ride market cycles must assess whether they are financially prepared to hold through unexpected downturns or black swan events.
En bloc investors should ensure they are properly advised, as not all ageing developments possess genuine redevelopment potential.
After considering the above, the following criteria have consistently guided my clients and me in identifying high-quality investment opportunities.
The Four Entry Indicators of an Investment-Grade Property
Ideally, a property should meet most—if not all—of the indicators below. At a minimum, satisfying two out of four may still justify holding the asset.
1. Capital Appreciation Potential
One useful benchmark is how a property performs relative to its district price index.
If a project has outperformed its surrounding area over the past year, it may signal stronger buyer demand driven by factors such as proximity to amenities, build quality, maintenance standards, design, and facilities.
This indicator is more applicable to resale properties, where historical data is available.
For new projects, points 3 and 4 below will be more relevant.
2. Rental Yield Strength
Strong rental performance often reflects high desirability.
Even within the same neighbourhood, some developments suffer from weak rental demand while nearby projects thrive. Detailed research is therefore essential.
Analyse rental data not only for your target project but also for neighbouring developments to identify inconsistencies and uncover hidden opportunities.
As a rule of thumb that i often use when advising my clients, for the Core Central Region, expect at least a 3% rental yield, Rest of Central Region - 3.5% rental yield, Outside Central Region - 4% rental yield.
While such opportunities are challenging to find, they do exist with sufficient market research.
If you don't have time to search, as many people do, join my mailing list so that whenever such deals are found, you get updated!
3. Growth story
Infrastructure investment is a powerful catalyst for real estate appreciation.
Local examples such as Sengkang, Punggol, and Jurong clearly demonstrate how government-led development can drive property values.
That said, investing blindly in “growth areas” without due diligence is risky. Careful research remains essential.
Looking ahead, districts such as Paya Lebar, Bidadari, Marina Bay, Pasir Panjang, and Woodlands are well-positioned for growth under the URA MasterPlan 2019.
The URA MasterPlan is your best friend and guide to where the next era of growth will be in Singapore. If you want to be a savvy investor, it is highly recommended that you devour the contents and follow what the government is planning to do in the next decade.
Having foresight is possible for all investors through doing your homework.
4. Right Entry Price
A. Below Market Value (BMV)
For resale properties, purchasing below market value provides immediate “built-in equity.”
Although such deals are rare and often snapped up quickly, this principle serves as a valuable benchmark. At minimum, buyers should aim for fair market value.
B. Right Entry Price
For new launches, it is usually not possible to buy at below market prices as new launches are never priced at lower per square foot prices than resale properties.
Brand new properties typically command a premium price due to the inclusion of profit margins for the developer, which is calculated based on the current costs of production.
What sort of costs?
1st - Land costs which perpetually increases in our land scarce nation.
2nd - Material and labour costs from architecture, interior design, construction among others which increase over time with wage inflation and increasing consumption taxes.
However, that does not mean it is not possible to find a new launch property with a right entry price.
To do that, we always have to compare apples with apples (new vs new) and find out which new project has the lowest risk and the highest upside potential.
One benefit of purchasing a new launch property is that your downside risk is reduced because you are buying at similar prices to other owners. Additionally, developers generally increase prices in phases, which can create upward pressure on prices.
Further more, the human tendency for loss aversion causes the majority of investors to hold on to their properties until they make a profit.
This limits your chances that other owners will sell at lower prices than what you have bought at.
The same cannot be said of resale properties as most times, the resale buyer will have to buy at a higher price from the original buyer.
When most of the original buyers have bought at lower prices and can sell at a lower price anytime, pricing pressures become easily stronger downwards than in the cases of new launches.
Summary
In general, the more of the above criteria a property meets, the stronger its investment prospects.
Think of it probabilistically:
Meeting one out of four indicators offers limited confidence.
Meeting three out of four significantly improves the odds of long-term success.
The same framework can also be applied when deciding whether to retain or sell your existing HDB or private property.
Use a structured decision-making approach to determine the most financially sound path forward.
Property investment is a team sport and I highly recommend that you assemble a team consisting of a mortgage specialist, lawyers and property wealth planners to advise you on blind spots and the best investment properties available in the market today.
The collective wisdom and insights will help you prevent costly mistakes and blind spots in your judgement which could take years to unravel.
Over the years, my team and I have helped many clients get started on their journey towards owning multiple properties with good passive income and returns.
Did this article help you with greater clarity of thought?
Like, comment below and share this with your friends who are property hunting!
Need an opinion on your property investment plans, the best buys available or help marketing your properties?
Get a 1-time free 30 min Property Wealth Planning consultation with Stuart and his team of Property Wealth Planners. Schedule one right now.
A PWP consultation includes:
- An in-depth financial affordability assessment and timeline planning
- Highly relevant investment insights
- A clear and customised investment road map
- A curated list of best buys in today's market with good growth potential & minimal risks
- Selecting units with the highest potential in a new launch project
- Advice on marketing and getting a buyer for your property fast
Stuart Chng, Executive Group District Director at Huttons, is a renowned leader and personality in the real estate industry
He adores music and can play a few instruments decently without upsetting his neighbours. When not doing so, he enjoys pillow fighting with his son and coming up with silly puns which barely amuses his wife.
Professionally, he is a licensed real estate agent, an avid stocks, options and real estate investor, business owner, team leader, speaker and columnist for several property newsletters and blogs and is often quoted in media interviews on 938FM, Channel 8, PropertyReport, PropertyGuru and other publications.
Throughout his career, he has helped many clients grow their wealth through selecting great property investments and managing their portfolios actively. Read his clients' reviews here.
Stuart has also coached many top million dollar producing agents from different real estate agencies in Singapore. Read his agents' reviews here.
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