For investors in Singapore who have the financial means, one of the age old questions has always been whether to invest in REITs or a property. Here, we look at a few things to consider.
But before that, let’s have a look at the price history.
There is no doubt that property prices have done well. The Property Price Index of private residential properties has risen from an index of 137.6 to 180.9, a 31.4% gain in just under 5 years.
Similarly, the rental index of private residential properties has risen from an index of 103.4 to 127.0, a 22.8% gain in a similar timeframe. An investor who bought an investment property in 2017, would not only have seen capital gains but also increased rental income.
Looking at the iEdge S-REIT Total Return Index, which tracks the performance of the most liquid REITs listed on SGX, the REIT index has also done pretty well with a total return of 33.8% across
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