I wrote about the potential property boom in Singapore previously and how you can take advantage of it without buying physical properties. I have already suggested investing the stocks of real estate agencies and I will talk about real estate developer stocks in this post.

Property Development Process, in a nutshell

It’s a lengthy process:

1. The developer has to bid for land, or attempt to en bloc an existing property,
2. then engage architects to design the masterpiece,
3. finally sales commences once the showflat and marketing collaterals are up. Here, they work with real estate agenciesto promote the units.
4. Payments will be collected as the building gets constructed. It isn’t surprising to pay a deposit now and wait for a project to complete in 4 years’ time.

Having such a long process makes it challenging for developers to catch the property cycle accurately (buy low and sell high) because of the long timeline of property development....