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Have you ever wondered if the value of your property is affected by the incumbent political party of one’s estate?
Here’s a good write-up by Getty Goh where he made a study of the profitable transactions of private properties in Hougang from 2009 to 2012.
Are private properties in opposition wards profitable? (Yahoo! News SG)
By Getty Goh
In recent weeks, the potential of a bi-election at Punggol East Single Member Constituency (SMC) seems to be a very hot topic among Singaporeans. Hence it is not surprising that this topic came up during one of the year-end gatherings I recently attended.
During the discussion, there were some views that Singaporeans, being a practical bunch, would likely vote for the incumbent party as they do not want to run the risk of having a potentially untested opposition party to run the ward. The logic is that a poorly run estate could potentially lead to a drop in property prices in that particular location.
At this juncture, I want to highlight that this is not intended to be a political discourse. However, property investing is about “location, location, location”. Since investors and homebuyers look out for things like being close to good schools, MRT stations, amenities, etc., this made me wonder if property prices in opposition wards do better or worse than property prices in wards held by the incumbent parties. To do this, we will look at how profitable private properties in Hougang SMC are, as compared to private properties across Singapore. The reason why Hougang SMC is used is because it is a long time opposition ward (since 1991). Apart from that, there is also a lack of alternatives – Potong Pasir was lost by the opposition in the General Election in 2011 while Aljunied GRC was recently won by the opposition party and may still be too early for any discernable trends to be developed.