OCT TO DEC 2021 Series S99 On-going Newsletter for 19th year

OCT TO DEC 2021 Series S99 On-going Newsletter for 19th year


Since 18 August 2021, the Government has announced it will open up the economy and the borders to free up manpower and let in overseas visitors. There will be less restrictions and controls on movement, like dining in and allowing bigger groups to participate in communal activities. And soon, we may be able to travel overseas after a wait of almost two years.

As more people are vaccinated, now over 82% as in September 2021, more commercial activities can be carried out, increasing the velocity of money supply and boosting revenue and income for the population.

But the more transmissible Delta variant has infected more people, causing alarm and fear. More people are choosing not to go out for shopping, or eating in food-courts, hawker centres and coffee shops.

When you look around, what you see only paints the worst side of the market situation. The caveat is that things are turning around in a bright and recovering scenario of steady growth and incremental momentum. Perhaps, the worst is going to be over soon (after 2 years of suffering).

While there are still many shop vacancies waiting to be filled, many landlords have managed to rent out their shops with realistic and fair pricing. This will safeguard the rental income and cashflow to pay off expenses or to assure income for family and personal obligations.

Landlords are welcome to call us at HP 96736477 to explore how to overcome their predicament and how to minimize their rental income loss. The tenants’ continuous survival will help the landlords to generate rental income for living expenses and savings.


The COVID-19 pandemic situation in Singapore is under a transit state where on the one hand more people are being vaccinated (over 82% as in September 2021) and yet there is an increasing number of people catching the virus. As the Minister for Health has said, we are going through a rite of passage, (things will get worse before they can get better).

Similarly, for the retail shop market, both buying and selling opportunities exist now for a gainful investment or re-investment.

Sellers may “sell low to buy lower into other investments “. Buyers may do ‘bottom fishing’ by buying at near bottom market curve “since only history will later tell that when the bottom price has been reached.

The COVID-19 Pandemic presents a turning point as a Crisis also brings forth opportunity to invest when there is changing price movement.

Below are the advantages of buying or selling now:


(1). Since 2014, seven years have passed, and shop prices have generally been declining. Prices are adjusting to reflect market fundamentals. Entry prices are much more affordable and realistic. There is no additional stamp duty in buying shops as compared to buying residential properties.

(2). A Hedge against inflation. Property prices are egged on to rise by money getting smaller.  There is an impending interest rate increase due to inflation. The COVID-19 pandemic will cause people to spend and consume once the situation get better and progressively more demand will cause prices to rise as the supply cannot cope up with the sudden spur. Already there are signs of inflation rising both in Singapore and globally. Food prices, commodities, energy products, and manufacturing cost are all rising.

(3). Property is an asset class to include in one’s investment portfolio.

The tenant’s rent could help to service the loan instalment and build up your equity capital. Over time, investor can get rental income and profit from capital gains while the loan interests are tax-deductible.  By putting up a deposit, a buyer can leverage on a bank loan to multiply the investment returns and quicken the pace of building wealth.


1).  To diversify and get back cash for reinvestment, retirement income, preparing for emergency income or distributing to the children.

2). To cut down on leverage:  borrowing and negative gearing, prospect of rising interest rates, paying for holding expenses like property tax, maintenance fee, repairs, and incidentals.

(3). Minimize tenancy problems and direct friction with tenants on rental problems and rental collection.

(4). Incurring opportunity cost for holding onto an under-performing asset as compared to other asset groups like Stocks, REITS, ETF, Index-products and other types of properties.

Both potential buyers and sellers may wish to call us at HP 96736477 to discuss the various options most ideal to their needs. Or you may wish to have our opinion on how much your properties are worth for rent or sale.