Real Estate Investment Assignment: Luxury Condo vs Property Securities Portfolio for HNWI in Singapore, Singapore

Topic 5: Individual Assignment on Real Estate Investment

INTRODUCTION

You have been approached by a HNWI with a budget of between SGD $7 – 10 million to be allocated to a luxury condominium for investment in Singapore. No leverage will be used for the purchase.

Using appropriate available property tools of property portals such as URA websites, PropertyGuru, REALIS etc. and financial websites or portals (SGX, Yahoo finance, Bloomberg etc.) including information from your lecture and relevant research, the property purchase will be an investment property as part of your HNWI’s strategy to diversify his overall portfolio.

At the same time, you are to use 3 Generative AI tools to compare the property purchase with a portfolio consisting of property related counters, be it ETFs, shares, unit trusts which are listed on SGX or distributed by local fund managers.

COVERAGE

You must address the following:

a) Background of your client

Provide a brief background of your client with assumptions such as nationality, number of properties he has to date, investment objectives etc. to facilitate meaningful computation/evaluation.

b) Physical Property

Purchase the condominium with an objective for investment.

• Choice of Property and reasons
  A brief narrative of the property selected and provide three reasons to be substantiated with data, figures, charts, price trends etc.
• Appropriate Computation
  • Amount and Purchase price
    Based on a date of purchase in April 2022 (or thereabouts), it should include all cost including commissions, tax considerations, ABSD, stamp duty etc.
  • Total Returns
    Capital appreciation and rental income, if appropriate based on purchase, less taxes paid, other ancillary cost/expense etc. For return, assumed property sold under current market conditions at last done market price and liquidated in the second quarter of 2025.

c) Generative AI Portfolios

• Recommendation of Generative AIs
  Compose a portfolio based on the holding period of the property comprising only property related securities such as ETFs, REITs unit trusts, property counters listed in SGX etc on 3 Generative AI tools (e.g Chat GPT, Co-pilot, Gemini or any others)
• Evaluation of Recommendation
  Critique the pros/cons, strengths/weaknesses of each of the 3 portfolio recommendations as well as the effectiveness of the AI tools. E.g. Does 1 tool focus more on qualitative or quantitative measurements? Are there underlying assumptions and stated limitations highlighted for the investor to consider?

Make a choice amongst the AI’s recommendations as to the best AI giving reasons based on the period April 2022 to date.

d) Conclusion

Draw meaningful conclusion of the choice between the physical property and a securities property related portfolio based on your findings. Your evaluation should go beyond mere computations with a need to consider factors/assumptions indicated in the background of your client. Research has to be done to substantiate your evaluation and provide sound advice to your client.

REQUIREMENTS

• Report will be in Arial font of size 11 with single spacing between lines and Normal margin (i.e. 1-inch margin throughout).
• Report shall not exceed 2000 words (excluding Appendices).
• Make specific references to the supporting information/research from your Appendices in the main report.
• Provide detailed workings/computations in Appendices.
• Follow the Assessment Rubrics as the relevant sections for your Report and adhere to relevant Business Written Communication format and guidelines to include contents page, page numbers, references bibliography, charts, data, pictures, word count etc.

SUBMISSION DEADLINE

Submit your report into Brightspace WM using this format: Student Name_Tutorial Group (e.g. Student Name_TF0X) by 26 May 2025, (Mon) 5pm.

Deadline (Report and GenAI Disclosure Statement) must be strictly adhered to. Late submission will be subjected to 10% penalty per day, up to a maximum of 7 calendar days, after which a zero mark is given, unless there are clear extenuating circumstances, notified in advance.

ASSESSMENT CRITERIA

The maximum score for the project is based on 100 marks and constitutes 20% of the WM score.

Please refer to ‘Individual Assignment’ Folder in WM Brightspace for the “Detailed Assessment Rubric”.

PLAGIARISM

Students assume full responsibility for the content and integrity of the academic work they submit. A student’s submitted work, presentations, tests, examinations, reports, and projects must be that of his/her work. Students shall be guilty of violation if they:

1. Represent the work of others as their own;
2. Use or obtain unauthorised assistance in any academic work;
3. Give unauthorised assistance to other students and
4. Misrepresent the content of submitted work.

Students who commit the plagiarism offence are subject to the disciplinary procedures outlined in the Ngee Ann Plagiarism Policy. For more information, please visit https://www1.np.edu.sg/clte/antiplagiarism/policy.htm