Real Estate Development Life Cycle

Jurong Lake District: a unique lakeside destination for business and leisure

The six main phases of the real estate development life cycle are as follows:

Land Assembly and Preparation

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Planning and Approval

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Construction and Project Management

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Marketing and Leasing

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Occupation and Use

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Upgrading, Renewal and Redevelopment

Source: Singapore's Real Estate 50 Years of Transformation, Seek et. al.

How much do you understand about the government agencies involved in the above life cycle? Are you fully aware of the future strategic enhancements in the Government's long term plans? How can this understanding inform your ability to derive value from your involvement in Singapore real estate?

Never Split the Difference

All ideas attributed to the author/author's team.

This tome was recommended by a senior management executive in one technology company. Well worth the time to read. Sharing some of the key ideas here and hope you can benefit from some of the great concepts.

Negotiation 101

Negotiation has transformation possibilities, can help us get what we want, and move others to a better place.

Tactical Empathy: Gain access to the mind of another person, balancing emotional intelligence and influence.

Sample exchange below - how would you fare against someone employing this strategy? =)

• A "no" oriented question to re-initiate contact "Have you given up on settling this amicably?"
• "It seems that you feel my (bill) is not justified" statement that leaves only the answer of "That's right"
• Calibrated question to reveal his thinking "How does this (bill) violate our agreement?"
• More "no" oriented questions to remove unspoken barriers "Are you saying I misled you?" "Are you saying I reneged on our agreement?"
• Labelling and mirroring the essence of his answers so he has to consider them again "It seems like you feel my work was subpar."
• A calibrated question in reply to any offer in order to get him to offer a solution "How am I supposed to accept that?"
• Offer a label that flatters his sense of control and power "It seems like you are the type of person who prides himself on the way he does business and has a knack for ...."
• A long pause and then one more "no"- oriented question. "Do you want to be known as someone who doesn't fulfil agreements?"

1) Be a Mirror

• "I'm sorry..."; mirror; silence; repeat
• Don't just be ready for surprises, use your skills to reveal surprises
• Don't commit to assumptions, view them as hypotheses and test them rigorously during the negotiation
• Negotiation is not an act of battle, it is a process of discovery. The goal is to uncover as much information as possible
• Make your sole and all-encompassing focus the other person and what they have to say
• Slow. It. Down. Make people feel as if they are being heard to build trust and rapport
• Put a smile on your face to create mental agility in yourself and your counterpart
• Voice tone: default is the positive/playful (relax and smile). Alternatively late-night DJ voice, inflect voice downward, keep it calm and slow to create aura of authority
• Mirrors: repeat the last three words of what someone has just said to encourage empathy and bonding

2) Don't feel their pain, label it

• Imagine yourself in your counterpart's situation. Acknowledge the other person's situation to convey that you are listening
• Focus first on clearing the barriers to agreement. Do not deny them
• Pause after labelling a barrier or mirroring a statement, let it sink in
• Label your counterpart's fears to diffuse their power
• List the worst things that the other party could say about you and say them before the other person can. "accusation audit"
• Use labels to reinforce and encourage positive perceptions and dynamics

3) Beware "Yes" - Master "No"

• Break the habit of attempting to get people to say "yes"
• "No" is not a failure, learn how to hear it calmly
• Don't aim for "yes" at the start
• Trigger the speaker to say "no" to make him feel safe, secure and in control. That's why "Is now a bad time to talk?" is always better
• Force them into a "no" by intentionally mislabelling one of their emotions or desires or asking a ridiculous question
• Negotiation in their world - the other party needs to convince themselves that the solution is want is their own idea
• If the counterpart is ignoring you, contact them with a clear and concise "No" oriented question that suggests that you are ready to walk away e.g. "Have you given up on this project?"

4) Trigger the two words that immediately transform any negotiation (hint: it's not "left")

• The more a person feels understood, and positively affirmed in that understanding, the more likely that urge for constructive behaviour will take hold
• Strive for "that's right" more than "yes"
• Use a summary to trigger a "that's right" Building blocks of a good summary are a label, combined with paraphrasing. Identify, rearticulate and emotionally affirm the world according to...

5) Bend their reality

• Anchor their emotions >  Let the other guy go first >  Establish a range > Pivot to non monetary terms > Use odd numbers > Surprise with a gift
• All negotiations are defined by a network of subterranean desires and needs
• Don't compromise - meeting halfway leads to bad deals for both sides
• When the counterpart uses the word "fair", ask them to explain how you are mistreating them
• Bend their reality by anchoring his starting point
• Loss aversion so make sure your counterpart sees that there is something to lose by inaction

6) Create the illusion of control

• Don't try to force your opponent to admit that you are right. Avoid aggressive confrontation
• Avoid question that can be answered with "yes" or tiny pieces of information since these require little thought and you will be expected to give something back
• Ask calibrated questions that start with "How" or "what" - provide an illusion of control and inspire them to speak at length
• Don't ask questions that start with "why"
• Calibrate your question to point your counterpart to solving your problem - encourage them to expend their energy on devising a solution
• Avoid angry emotional reactions
• Influence those behind the table

7) Guarantee execution

• Ask calibrated "how" questions, and ask them again and again to keep them engaged but off balance. Lead them to contemplate your problems when making their demands
• Shape the negotiating environment with "How can I do that?" as a subtle version of "no"
• Always identify the motivations of the players "behind the table". Ask how a deal will affect everyone else and how on board they are.
• Pay close attention to tone of voice and body language - in-congruence shows lying or discomfort
• Rule of Three: use calibrated questions, summaries and labels to get your counterpart to reaffirm their agreement at least three times
• If you are hearing a lot of "I", "me", "my" , the real power to decide probably lies elsewhere. On the contrary, "we", "they", "them" likely to be a decision maker keeping his options open.
• Use your own name to make yourself a real person to the other side

8) Bargain hard

• Identify their negotiating style: accommodator, assertive, analyst
• Prepare: design an ambitious and legitimate goal
• Prepare dodging tactics to avoid extreme anchors
• Set boundaries without anger: the situation is the problem, not the guy across the table
• Prepare an Ackerman plan

Ackerman model:

• set your target price X 
• set your first offer at 65% of X 
• calculate three raises of decreasing increments (85%, 95%, 100%) 
• use lots of empathy and different ways of saying "No" to get the other side to counter before you increase your offer 
• when calculating the final amount use precise non round number to give credibility and weight 
• throw in a non-monetary item with your final number to show you are at your limit

9) Find the Black Swan

• Let what you know guide you but not blind you
• Positive leverage: the ability to give someone what they want
• Negative leverage: the ability to hurt someone
• Normative leverage: use your counterpart's norms to bring them around
• Work to understand the other side's "religion"
• Review everything you hear from your counterpart
• Exploit the similarity principle
• When someone seems irrational, search for constraints, hidden desires and bad information
• Get face time with your counterpart and pay attention to verbal and nonverbal communication at unguarded moments

Negotiation Sheet

a) The Goal: set an optimistic but reasonable goal, define it clearly, write it down, discuss with someone else (make it harder to wimp out), carry the goal into the negotiation

b) Summary: the known facts that have led up to the negotiation

c) Labels/ Accusation audit

• It seems like X is valuable to you
• It seems like you don't like X
• It seems like you value X
• It seems like X makes it easier
• It seems like you're reluctant to X

d) Calibrated questions: to reveal value to you and your counterpart and overcome potential deal killers

• What are we trying to accomplish?
• How is that worthwhile?
• What is the core issue here?
• How does that affect things?
• What is the biggest challenge you face?
• How does this fit into what the objective is?
• (Behind the table deal killers) How does this affect the rest of your team?
• How on board are the people not on this call?
• What do your colleagues see as the main challenges in this area?
• What are we up against here?
• What is the biggest challenge you face?
• How does making a deal with us affect things?
• What happens if you do nothing?
• What does doing nothing cost you?
• How does making this deal resonate with what your company prides itself on?
• It seems like X is important
• It seems you feel like my company is in a unique position to X
• It seems like you are worried that X.

e) Non-cash offers: those possessed by your counterpart that would be valuable

Takeaways

How often does negotiation arise in your daily lives? Would the above methodologies be
effective to you? Let me know how you have successfully applied the above in the comments below.

Ready for the future? Real Estate Industry Transformation Map

The TIPS framework

• Technology
• Innovation
• Professionalism 
• Skill

https://www.mti.gov.sg/ITMs/Built-Environment/Real-Estate

Launched Feb 2018 but nevertheless a good reminder.

RES Course Week 2

The lessons for today were:

a)Easement, Covenant, Licence, State Lands Act, Registration of titles
b)Law of contract

Business law was one of my favourite modules at Nanyang Business School and it was enjoyable having refreshers on the concepts.

2hr Lunch break was too long

RES Course Week 1 - Flying Start

Sharing my experiences on the RES course by Real Centre Network ("RCN")!

I enrolled in the course running from 17-27 March 2020. 

Facilities and Course Material

Course notes were provided as print outs for the first day.

The rest of the notes were in electronic format and handed out in the form of a card sized thumb drive. Kudos for being environmentally friendly.

                                              

The classroom was nice and cozy, just about right for the class size of 20. Reminded me of my tutorials at Nanyang Business School (south spine). Time to put on my learning cap.

Content

There are two lessons each day. On the first day we covered:

a) Real estate market: refresher on fundamental stakeholders in the real estate value chain such as developers, investors, government agencies

b) Basic land law concepts: definitions and terminology galore.

My prior knowledge of the tax act and insurance act definitely (pun intended) came in handy as I can navigate statutes with ease.

Lessons were taught by two lecturers, both who were able to articulate concepts clearly by giving real life examples. 

Course material provided were sufficient to allow students to understand the basic concepts. 

There was a typo in the course material, my meticulous character and attention to detail came in handy to resolve the factual misalignment. (e.g. maximum site coverage allowed for condominium development is 50%. (notes states 40%!)

During the breaks, I took the chance to reflect and refine my COVID-19 equity market strategy

Overall, a promising start. Looking forward to absorbing lots of knowledge (like a thirsty sponge) and contribute my value to the ecosystem.

Should you have any questions on the course, please leave a comment below!

Forett at Bukit Timah: A Deep Dive into Freehold Luxury in District 21

In the dynamic and land-scarce Singapore property market, a freehold property is a coveted asset. A large-scale, 633-unit freehold development nestled in the heart of the prestigious Bukit Timah district (District 21) is an even rarer opportunity—a true legacy asset for generations. This is the unique and powerful value proposition of Forett at Bukit Timah.

For discerning homebuyers and investors, the perennial challenge is finding a property that flawlessly balances serene living, urban connectivity, modern luxury, and long-term value appreciation. Does Forett at Bukit Timah tick all these boxes? This in-depth review will dissect every facet of this development, from its prime location and award-winning design to a rigorous analysis of its investment potential, helping you decide if this is the right asset for your portfolio in 2025 and beyond.

Decoding the Location: Why Bukit Timah is a Perennial Favourite

The adage "location, location, location" has never been more relevant. Forett at Bukit Timah's address on Toh Tuck Road is not just a pin on a map; it's a gateway to a lifestyle of unparalleled convenience, prestige, and connection to nature.

Unmatched Connectivity

Whether you're commuting to the office or exploring the island on a weekend, connectivity is seamless. The development is a comfortable 7 to 10-minute walk from the Beauty World MRT Station on the Downtown Line, providing a direct, air-conditioned link to key business hubs like the CBD and Marina Bay.

For those who prefer to drive, the location offers swift access to major arterial roads and expressways, including the Pan Island Expressway (PIE) and Ayer Rajah Expressway (AYE). A stylized map of the area would clearly show that key destinations like Orchard Road, the Jurong Lake District, and Holland Village are all just a short drive away.

The Prestigious Education Belt

For families, Bukit Timah is synonymous with educational excellence. Forett at Bukit Timah sits squarely within the highly sought-after 1-kilometre radius of top-tier primary schools, including Pei Hwa Presbyterian Primary School and Bukit Timah Primary School. This proximity is a significant advantage, dramatically increasing the probability of securing a place during the Primary 1 registration exercise.

Beyond the primary level, the area is home to a host of renowned institutions such as Methodist Girls' School, Hwa Chong Institution, and several well-regarded international schools, making it a true "education belt" that caters to every stage of a child's academic journey.

A Lifestyle of Convenience and Nature

Living at Forett at Bukit Timah means having the best of both worlds. For daily necessities and retail therapy, residents are minutes away from Bukit Timah Plaza, Beauty World Centre, and the vibrant eateries along the famous Cheong Chin Nam Road.

More impressively, the development is a stone's throw from the "green lungs" of Singapore. Imagine a Saturday morning: a brisk hike through the historic Bukit Timah Nature Reserve, a leisurely cycle along the scenic Rail Corridor, or a family picnic at the nearby Bukit Batok Nature Park. This seamless integration of urban living and natural tranquility is a rare luxury.

An Investor's Analysis: The Financial Case for Forett at Bukit Timah

Beyond the lifestyle appeal, a property purchase must make financial sense. As a significant freehold condo in Singapore, Forett at Bukit Timah presents a compelling investment case grounded in solid data and future growth potential.

Price Point and Comparative Market Analysis

When analyzing its per-square-foot () pricing, Forett at Bukit Timah holds a competitive position. A comparative market analysis chart would show its value proposition when measured against other new launches and older freehold developments within District 21 property investment circles. Given its large land size and extensive facilities, the development offers economies of scale that translate into tangible value for buyers.

The URA Master Plan and Future Growth Catalysts

Property analysts consistently point to the transformative power of the URA Master Plan on the surrounding area. The most significant catalyst is the upcoming Beauty World Integrated Transport Hub (ITH). This major project will not only enhance transport connectivity but also introduce new commercial, retail, and community spaces, directly boosting the vibrancy and value of the entire precinct. This strategic development makes any investment here a forward-looking one.

Rental Yield and Tenant Pool

From a rental perspective, Forett at Bukit Timah is poised to attract a high-quality tenant pool. The proximity to international schools makes it a magnet for expatriate families, while its connectivity appeals to well-heeled professionals. Based on current market rates in the area, investors can project a healthy gross rental yield, making this an attractive option for generating passive income.

A Look Inside: Project Details and Lifestyle Facilities

Developed by a joint venture between the reputable Qingjian Realty and Perennial Real Estate Holdings, Forett at Bukit Timah is a testament to quality craftsmanship and thoughtful design, having already won multiple architectural awards.

Development Overview and Award-Winning Design

Sprawling across a massive ~360,130 sqft site, the development’s 13 residential blocks are thoughtfully arranged to create a low-density, resort-like sanctuary. The name "Forett" itself is derived from the French word for forest, reflecting the design ethos of living amidst nature.

A Comprehensive Suite of Facilities

The list of facilities is nothing short of exceptional. Residents can enjoy five distinct swimming pools, including a 50-metre lap pool for serious swimmers, a dedicated kids' pool, and several leisure pools. The expansive grounds also feature a grand clubhouse with a fully-equipped gymnasium, a private theatrette, multiple themed gardens, sky terraces, and gourmet pavilions perfect for hosting guests.

Unit Mix and Floor Plan Analysis

Catering to a wide range of needs, the unit mix spans from 1-Bedroom + Study units (from 474 sqft) to spacious 5-Bedroom Suites (1,884 sqft). The floor plans are designed for maximum efficiency and livability. For instance, many 2-bedroom units feature dumbbell layouts that eliminate corridor wastage, while certain larger units offer dual-key configurations—ideal for multi-generational living or renting out a portion for additional income.

Conclusion: Is Forett at Bukit Timah the Right Value Proposition for You?

Forett at Bukit Timah is more than just a condominium; it's a strategic investment in a legacy asset. Its core strengths are undeniable: a rare large-scale freehold tenure in a prime district, unparalleled access to top schools and nature, and immense future growth potential fuelled by the Bukit Timah Integrated Transport Hub.

While the premium price point reflects its freehold status and prime location, the long-term value proposition is clear. Forett at Bukit Timah is the ideal choice for legacy-minded investors, families who prioritize their children's education, and discerning homeowners seeking a tranquil, nature-infused lifestyle without sacrificing an ounce of urban convenience.

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FAQ Section

1. What is the expected TOP (Temporary Occupation Permit) date for Forett at Bukit Timah?

   Forett at Bukit Timah has already achieved its TOP in 2024, meaning units are ready for immediate occupation or rental upon completion of the sale.

2. What makes a freehold property like Forett at Bukit Timah a good investment?

   A freehold property grants ownership of the land in perpetuity, which is extremely rare in Singapore. This scarcity, combined with its prime location and future development plans for the area, provides strong potential for long-term capital preservation and appreciation compared to 99-year leasehold properties.

3. How does Forett at Bukit Timah's location benefit families with children?

   Its key advantage is its proximity to the "Bukit Timah education belt." It is within the highly desirable 1km radius of Pei Hwa Presbyterian Primary School and Bukit Timah Primary School, significantly increasing the chances for school admission. It is also close to several other prestigious local and international schools.

Update on 7 Aug 2024