Owning a new condo is now the top preference for numerous buyers and investors in Singapore. Are you interested in a summary of the advantages and disadvantages of new vs old condos? Then visit condo.com.sg for a side-by-side comparison.
In the Singapore property market, there are two types of land tenures – freehold and leasehold. Freehold properties mean that the buyer owns the property and the land it sits on for an indefinite period. On the other hand, leasehold properties have a specific lease period, after which the property will be returned to the state.
Resale condos also have the advantage of being ready for immediate occupancy. Buyers do not have to wait for the project to be completed, unlike new condo launches, which may take years to construct. This is especially beneficial for buyers who need a place to live in immediately or for investors looking for rental income.
In the resale market, freehold properties are highly sought after due to their long-term value. As the land is not subject to any lease constraints, freehold properties tend to appreciate faster and have a higher resale value compared to leasehold properties. This makes them a more attractive investment for those looking to hold on to their property for the long term.
As such, buyers who are less concerned about the age of a property may find great value in the resale market.
The value of a newly constructed condominium can demand a higher rental rate. Renters are typically willing to pay an added cost for a contemporary unit in a modern complex with updated amenities and well-designed floor plans. This increased appeal to tenants makes a newly built condo a desirable investment, guaranteeing a greater return on investment.
Freehold vs. Leasehold: The Battle for Long-Term Value
In recent years, the condo market in Singapore has seen a shift in focus towards the resale segment. While new launches are still highly sought after, the resale segment has been gaining traction due to its unique value proposition. In this article, we will explore the factors that have led to the rise of the resale condo market in Singapore and why it is an attractive option for investors and homeowners.
While new condo developments often come with attractive developer discounts and perks, resale condos have their own set of advantages. As mentioned earlier, resale condos offer more significant units in established locations with freehold tenure. But that’s not all.
The resale condo segment in Singapore is a prominent contributor to the overall success of the condo market. Unlike new launch condos which often carry a premium price tag, resale condos offer buyers a better deal in terms of size and location. This is particularly beneficial in prime districts 9, 10, and 11, where older freehold condos can provide larger living spaces compared to newer leasehold properties. This makes them a popular choice among families and investors seeking long-term capital growth. Additionally, freehold properties are considered more desirable as they do not face the issue of lease decay over time. Therefore, buyers who prioritize the property’s age may find great value in the resale market.
attractive to investors and provides a higher return on investment.
Singapore’s real estate market has always been a hot topic for investors and homeowners alike. With its stable economy and strong property laws, Singapore has been a prime location for real estate investment. Within the market, the condominium segment has been particularly attractive for its luxurious lifestyle and high potential for capital appreciation.
Another significant advantage of resale condos is the ability to conduct detailed inspections of the unit before purchase. As the unit is already built, buyers can physically inspect the quality of the finishes, fittings, and workmanship. This minimizes the risk of purchasing a property with defects, which is a common concern for new condo launches.
Location, Location, Location
The Perks of a Resale Condo vs. a New Launch
In conclusion, the resale condo market in Singapore is shining with size, location, and freehold options. These factors have contributed to the growing popularity of the resale segment, providing buyers with a variety of choices that cater to their needs and preferences. Whether you are an investor looking for long-term value or a homeowner seeking a spacious and conveniently located unit, the resales segment of the condominium market in Singapore is definitely worth considering.
In Singapore’s real estate market, location is a significant factor that affects the value of a property. The same applies to the resale condo market. Most resale condos are located in established neighborhoods with well-developed infrastructure and amenities, making them highly attractive to buyers.
Size Matters: The Appeal of Larger Units
In terms of pricing, resale condos can also offer a better deal compared to new launches. In the current market, developers often raise their prices for new launches, while resale condos are sold at more reasonable and negotiable prices. This provides buyers with more room for negotiation, making it a more cost-effective option.
These locations often have a good mix of residential and commercial developments, providing residents with easy access to daily necessities such as supermarkets, banks, and recreational facilities. Furthermore, established neighborhoods tend to have less noise and construction disruptions compared to new developments, providing a more conducive living environment.
Apart from the potential for capital appreciation, freehold properties also offer a sense of security for buyers. They do not have to worry about the lease running out and the property returning to the state, making freehold properties a more stable investment option.
One of the main reasons why the resale condo market in Singapore is gaining popularity is due to the size of the units. In recent years, there has been a trend towards smaller apartment sizes in new condo launches. This is mainly due to the high land costs and the increasing demand for affordable housing. As a result, new condo units are typically smaller in size, making resale units a more attractive option for those looking for more living space.
In the resale market, there is a wider variety of unit sizes available, ranging from one-bedroom apartments to spacious penthouses. This allows buyers to choose units that suit their needs and lifestyles. Families with children, for example, may prefer larger units with more bedrooms, while young professionals may be more interested in smaller units that are easier to maintain.