Real Estate Investment Topic 5 Individual Assignment Questions | NGA

Introduction

You have been approached by an 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 their 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 costs, 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 costs/expenses, etc. For return, the assumed property is sold under current market conditions at the 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 from April 2022 to date.

d) Conclusion

Draw a 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.

Note: You are using past data/computation to advise your client now (Year 2025).

Requirments

• The report will be in Arial font of size 11 with single spacing between lines and Normal margin (i.e. 1-inch margin throughout).
• The 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 the 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) 5 pm.

Deadline (Report and GenAI Disclosure Statement) must be strictly adhered to. Late submission will be subject to a 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 the ‘Individual Assignment’ Folder in WM Brightspace for the “Detailed Assessment Rubric”