A condo that has a leasehold of 99 years, with only 60 or 70 years remaining, may pose certain limitations. Properties with shorter lease terms could encounter difficulties in obtaining financing, experience lower demand, and have a weaker potential for capital appreciation. This is why it is important to consider newly launched properties when searching for a 99-year leasehold condo. To find out more about the latest launches, visit www.condo.com.sg.
One of the main reasons for the growing popularity of resale properties is their location. In land-scarce Singapore, prime locations are highly coveted. Most of the new launches are located on the outskirts of the city, making resale properties in more central areas even more attractive. These central locations offer residents convenience and accessibility to amenities, such as shopping malls, schools, and transportation hubs. This has led to an increase in demand for resale properties, driving up their value.
In conclusion, the allure of resale properties in Singapore’s condo market is evident. With their prime locations, potential for customization, lower prices, and growing demand, resale properties have become a sought-after option for buyers. While new launches continue to dominate the market, the rising value of resale properties is unlocking new opportunities for both first-time buyers and investors. As the market continues to evolve, it will be interesting to see how the balance between these two segments of the market will shift in the coming years.
The rising value of resale properties has also been fueled by the government’s cooling measures. In an effort to prevent the property market from overheating, the government has implemented various measures, such as the Additional Buyer’s Stamp Duty (ABSD) and the Total Debt Servicing Ratio (TDSR). These measures have made it more difficult for buyers to secure loans, resulting in a decrease in demand for new launches. This has indirectly benefited resale properties, as buyers turn to the resale market in search of more affordable options.
Singapore’s property market has always been a hot topic, especially when it comes to condominiums. With its limited land space and growing population, the demand for condominiums has been steadily increasing. This has led to an influx of new launches, making the market even more competitive. However, amidst the excitement surrounding new developments, the value of resale properties has been steadily rising. In this article, we delve into the reasons behind the allure of resale properties and how it is unlocking value in Singapore’s condo market.
Therefore, choosing the right location is crucial for investors seeking high rental income, and a Singapore condo offers a diverse selection of options to cater to different audiences.
The alluring aspect of owning a Singapore condo also includes its excellent potential for rentals. The city has a large expatriate workforce and a significant population of foreign students, creating a constant demand for premium rental properties. Expats find condos particularly appealing due to their convenient amenities and prime locations. For investors, the annual rental yields can range from 2.5% to 4%, depending on factors such as location, unit size, and market conditions. In popular areas like River Valley, Novena, and East Coast, condos are often sought after by professionals working in the Central Business District. Suburban regions such as Punggol and Sengkang see a demand for rentals from families and tenants seeking affordable housing options with added lifestyle benefits. Thus, investors must carefully select the right location to maximize their rental income, and the diverse range of options offered by Singapore condos caters to a wide range of tenants.
This adds to its potential for future gains and stability in the market.
Additionally, resale properties often come with a lower price tag compared to new launches. This is due to the fact that older properties have already depreciated in value. As a result, buyers can get more for their money with a resale property. This is especially attractive for first-time buyers who may have a limited budget. Furthermore, the lower price also means that buyers can potentially get a higher return on investment in the future, as the property’s value may appreciate over time.
Furthermore, resale properties often have more established and matured surroundings. This means that the infrastructure and community facilities are already in place, making it more attractive to potential buyers. New launches, on the other hand, may take years to fully develop their surroundings. This can be a disadvantage for buyers who are looking for immediate convenience.
However, it is not just the young investors who are drawn to new launches. Foreign investors, particularly from China, have also been investing heavily in new developments in Singapore. In recent years, Chinese buyers have become the top foreign buyers in the Singapore property market, accounting for almost one-quarter of the total purchases. This influx of foreign investment has further intensified the competition in the market, driving up prices and making it even more challenging for locals to secure a property.
The real estate market in Singapore experiences a positive boost from the resale sector of its condo market. While purchasing a new condo may require paying a higher price, opting for a resale condo offers better value, especially in terms of its size and location. For instance, an aged condo with a freehold status in prime districts such as 9, 10, or 11 might offer more spacious living areas as compared to a newer condo with a leasehold status, making it appealing to families and investors seeking long-term returns. Additionally, owning a freehold property is considered highly favorable as it is not affected by lease decay, thus increasing its potential for future appreciation and providing stability in the market.
Another factor contributing to the allure of resale properties is the potential for customization. As these properties are typically older, buyers have the option to renovate and redesign the space according to their preferences. This allows them to create a unique space that fits their lifestyle and needs. In contrast, new launches often come with pre-designed units, limiting the buyer’s ability to customize their living space.
Another interesting trend in the condo market is the growing number of young investors. As the younger generation enters the workforce and starts earning a steady income, they are looking for ways to invest their money. The property market, in particular, has been a popular choice for these young investors. With the growing number of new launches, developers have been offering attractive incentives to lure in this segment of buyers. These incentives include lower down payments and deferred payment schemes, making it easier for young investors to enter the market.