Stocks or property: which builds wealth faster in Singapore? (2026)

I personally feel that many of the points in this article is bias towards property which could give readers some wrong perspective. Therefore I’ll try to reply with one that is bias towards stocks.

1. Property gives more leverage than stocks.
Not entirely true. There are brokerages that allows up to 5 times leverage when you purchase certain stocks using the margin accounts, depending on the riskiness of the counters you purchase. It is also not always true that you can get 80% financing for your property. This is dependent on the valuation of the property, your credit rating, as well as government/bank policies.

The calculation of margin call isn’t accurate. There is usually an initial margin and maintenance margin level to be kept. In real estate, should a property bubble bursting occur, believe you me, the banks will come and bother you. In stocks the margin call limits your downside, but in real estate, if property prices collapse and you are unable to service your monthly installments, you can lose alot more.

2.You may lose everything in stock investing
This is true. A listed company can file for bankruptcy and you may lose everything in your stock. The value of a property never drops to zero, but as I’ve pointed out previously, it is possible to lose everything in property investing as well. Just think negative sale.

3.You can pay lower than market price to buy a house
Totally untrue. In the stock market, with a well regulated and controlled exchange, the price of a stock is the end result of supply and demand, meaning to say it will be transacted ONLY at market price. You can’t pay less but you surely cannot pay a single cent more as well. If the price of a stock is $1, you can still queue to buy at $0.90. Because the stock market is liquid and “live”, a $0.90 price can possibly be hit. The only difference is, if you manage to get it at $0.90, you’re still buying it at market price. The same reason of “some owners selling property 10% lower than market value” is the same reason why a $1.00 can drop to $0.90.

The “market value” of a property is hard to measure which is why there is no way to measure if it is 10% lower or 10% higher. The “value” of a property can depend on many factors such as, past transacted prices, the condition, the facing, the floor, the age, the valuation (which can be inflated), the asking price, amenities, facilities, location etc etc. Nobody can put an exact figure on a value of a property, and this is why a stock market actually protects investors from overpaying.

4. You can enhance the value of the property
At a cost which does not necessarily translate to an equal increase in the value of your house.

5. You can let others help you pay for your property
This is possible only when price of property is low and rental yield is high. As of current moment, the price of property in Singapore is at a rate that makes it very difficult to do this. In an ideal world, this concept is lovely, but in a practical world, there are many risks involved.

Let’s look at the example given, $1mil property with a 70% loan for a period of 25 years at 3% interest rate. The monthly repayment should actually by more than $3000, approximately $3,300, not $2,655. If you can rent if out for $3,000 you will not be able to cover the instalment. If you can rent if out for $3,500, you might still not be able to cover. Why? $3,500 rental includes your monthly maintenance fees. An average monthly maintenance fee in Singapore is about $250-300 per month, meaning you only pocketed about $3,250. You will need to pay property tax every year and for such a property, we can estimate the property tax to about $2,500 per year. That makes your net profit from rental merely $3,042. On top of this, you can expect your property to be tenanted 100% of the time. There will be period where you’re advertising for new tenants, or period where you’re renovating your house. You still have to pay your installments during these no income period. Money is also spend on renovating/cleaning/repainting etc everytime an old tenant vacates. Conclusion is, it is almost impossible to let others pay for your property in current times as how you’ve mentioned.

I do however agree with your final points that there are times when one form of investment is better than the other. With all due respect, I’m writing such a comment only to let your readers see the other side of the coin.

The post is extremely biased. It’s obvious that Mr Propwise wants readers to invest in properties. If you buy an Emerging Market mutual fund or ETF, the returns are 18% per annum in the last 15 years. If you invest in Singapore residential properties, the returns are only 6% per annum. If you leverage 80%, the returns increase to around 15%, still lower than emerging markets ETF. If you buy any emerging market fund or ETF, e.g. Latin America, Indonesia, Russia, BRIC, CHina etc, the returns are around 18-20% per annum.

I am an investor of both properties and stocks for the last 15 years and I can tell you there are several advantages stocks have over properties.

1. Stocks are more liquid than properties. If the market turn for the worse, I can exit my stocks or unit trust portfolio almost immediately. For properties, it takes around 3 months to even 6 to find a willing buyer. Sometimes, you can’t even find a buyer in turbulent times.

2. If you buy an ETF or mutual fund, it comprises more than 50 stocks so the chances of going zero is virtually zero.

3. In a bearish market or recesssion, you can short sell stocks and make 20 – 50% in a year, whereas you cannot short the physical property market.

4. Transaction cost of property is around 2 – 3%, including legal, agent, stamp fees. Stocks cost less than 1%.

5. If the Singapore property market falls, you can’t easily move your investments overseas unless you do a lot of research. You can always diversify to overseas stocks easily. Just pick up the phone to call your dealer, log into your internet trading account or call your relationship manager to buy an emerging market fund.

http://www.fundsupermart.com/main/fundinfo/topFunds.svdo

Please check fundsupermart hyperlink above. I invested in most of them. Top 5 performing funds:
1. Aberdeen Indonesia Equity 23.88% per annum
2. Aberdeen Thailand Equity 20.05% per annum
3. LionGlobal Thailand 19.36% per annum
4. United Gold and General Fund 18.16% per annum
5. First State Regional India Fund 17.4% per annum

For indices over 10 years, check out:
1. Russian RTS Index 20.95% per annum
2. Brazil BOVESPA Index 16.09% per annum
3. Mumbai SENSEX 14.71% per annum.
4. Thai SET 13.83% per annum.
5. Hang Seng Mainland 100 11.15%.

Please take a look at the URA residential property index. Many Singaporeans swear by property as the way to become rich but I beg to differ. In 1997, Singapore’s property reached the peak and crashed 40%. It rose a bit in 1999 before crashing to a new low. It didn’t reach 1997’s peak until 2010. Mind you, the returns for property if you invested in 1997 was practically ZERO. Timing is everything and it’s not true that property is always a better bet than stocks.

One must remain nimble and buy property when the risk adjusted return is better than stocks and do the opposite when the risk adjusted return is better in stocks. Also, with CFDs, I can short the market and make 20 – 40% in a bear market while you can only long properties. I will have more bullets to buy properties and CFDs when the property and stock market crash in 2012/13 because I don’t just hold cash, but I made double digit returns then.

Completely agree with Mr Propwise. You are convincingly amazing!

Hi guys, after looking at the discussion. I was just wondering is it a good time to enter into property stocks which has the best of both worlds. For example, SC Global, isn’t it better to buy their shares now than buying their physical inventory? The shares k be put into lending scheme and enjoy extra return on top of dividends. It is fuss free compared with collecting rental.

Please correct me and advise thanks

After the 5th anti-speculation measure, I’m even more convinced in my argument that one must not invest in only properties but must diversify across different asset classes. Property prices in Singapore will always be subjected to government intervention because it is politically sensitive and has systemic banking risk. Stock market fluctuations are often left alone by the government. With this measure, I will be diversifying my money into overseas properties and stocks.

People have short memories. Those who bought properties in 1997 never broke even until 2010. That’s a good 13 years! The Straits Times Index was 1800 back in 1997, fell to 900 in 1998, rose to 2700 in 2000, fell to 1300 in 2003, rose to 3831 in Nov 2007, fell to 1450 in Mar 2009. Today it is at 2650. It has appreciated far more than real estate!

Hi Geoffrey, Even the straits Times Index goes to so high, we may not be able to make money. As for my expreince all of my stock brought in 1994 has never recover in prices till now. Even some I still hold it now. Remain only less then 10 percents in money, don’t forget the Malaysia Clob, all the money is freeze till when they return is all most less then 5 %, and the currency also had drop to rm2.45 equal to $1 sing. I had loss almost $400,000 at that time investing in stock market. I was almost broke.

My friend told told me where you fell, you had to get up from there, so I deside to go in to invest again I buy Capital Land two years ago at 4 to 4.20 I think you guy can see what is the prices now right. I loss again more then 100k. So my lesson is that even if you had a chance to make gain or profit in stock sold it to take profit. What ever goes up will come down in stock market this is where the rich make money from you.

But not in the property market.
For my view on property market.
And I buy my first 3 room flat 1996 at open market, as I was broke in the stock market and could not affort to buy bigger one, so I bourght a HDB 3 room at $158,000/ + renovation $40,000/ ++ Interst rate for 5 years $18,000/+ total $216,000/ After staying for 11 years for free, I sold it for $268,000/ If add the 11 years rental of $1,100 per month = $145,000 + $52,000 profit = $197,000/ Saved. Now that 3 room is $350,000/ if I can keep it.

Even during the property market cruse time, 1998 I saw my neigbhour selling his 3 room flat two floor below mine, same block as my at $180,000/

Then in 2006 I want to change my HDB to a 5 room flat. Simei Prices in 2006 $295k till I find one in 2008 the prices $400,000 so I quickly buy, now is around $500,000 +

So I started to invest in Private And Commercial Property 2010, The prices has go up 30 – 150+ percent in value. and had rental yeild every month not included in the percentage.

As for the private condo. that i had brought, the monthly rental cannot cover my instatment So I had to top up $100 to $300 per month. I still think is worth it. If I put in the bank of $180,000/ what is the Interst rate every body should know. But I put into the property after the collecting rental and deduct the the bank interst rate I still had $2,000 left over as a passion income or call it a Private CPF, ( as I had to pay to the Bank for the moragate).

So I would recommend Jeffery and Geoffery to come out and teach some course for the new invester if you are so good in the stock market, Y keep it to your self and recommend some to the student to make money.

But for my own comments only, is, if you are buying a home to stay no matter a HDB or Condo or Landed property, just buy within your own burget and home that you like. you sure to earn in value. It’s just that simple, don’t need like stock to value it, and keep worrying the europe and US or China up or down.

So for investment in property also within in your arm length, like if there is no rental to collect you can still pay the instatment that’s will be fine, that may be for a year. And one more thing investing in property is a very slow process don’t think over night will increase in value or income. Maybe some time have for flipping. But for stock market or cassino can.

Hope more people to commend and to share their ideals. Happy investing to all of you no matter in property or stock market. Not cassino ya… CHEERS