Newer units have better fixtures, older ones have more living space

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The private resale market finished strong last year. There was a significant rebound in buyer interest and sales volume hit a 14-year high.

The resale market was well supported by HDB upgraders who sold their apartments at attractive prices over the past year. There were other buyers who downgraded land properties and larger condominiums as well. Many buyers turned to the secondary market as there was a shortage of new homes in suburban areas.

Additionally, the price gap between new and resale condominium units has widened over the years, from 11.1% in 2011 to 46.7% in 2021. As a result, many buyers find the more affordable and better value resale condominiums.

The market share of resale leasehold condominiums has increased over the past decade.

Based on cautionary data from the Urban Redevelopment Authority, 9,584 resale leasehold condominium units were sold in 2021, above the 10-year average of 4,069 units.

As a proportion of condominium resale transactions, leasehold condominiums accounted for 58.5% of the market share last year, compared to 47.7% in 2011. Comparatively, 6,802 freehold condominium units were sold in 2021, which represents 41.5% of total resales. volume.

New leasehold resale properties have grown in popularity in recent years. New resale leaseback condominiums less than 10 years old accounted for 31.3% of total resale leaseback transactions last year, up from 16.8% in 2011.

The top selling new resale leaseback condominiums from 2020 to 2021 were Marina One Residences (220 units), High Park Residences (170 units), Sims Urban Oasis (123 units), Bartley Ridge (114 units) and Rosewood Park (109 units).

Older resale leasehold condominiums over 40 years old saw demand increase slightly from 1.4% in 2011 to 2.1% in 2021. The most popular condominiums from 2020 to 2021 were Neptune Court (46 units ), Braddell View (41 units), Lagoon View (29 units), The Arcadia (26 units), Hillcrest Arcadia (25 units) and People’s Park Complex (21 units).

Buyers prefer new leasehold resale condominiums, as many are built by reputable developers and offer amenities such as gymnasiums, pavilions, spa facilities and leisure pools. Some of these projects could be mixed developments encompassing commercial and retail services.

Demand may also have increased with the increased supply of these condominiums on the market. Over the past decade, many plots of land have been sold under the government’s Land Sale Scheme.

Considerations When Buying Older Condominiums

Demand for older leasehold condominium units has not grown as rapidly as their newer counterparts. Many owners may not have put their units up for sale because they may be waiting for a collective sale agreement to earn a bargain. Other buyers may have considered other factors, such as the higher cost of upgrading or repairing the air conditioning system, kitchen cabinets, bathrooms, or electrical wiring in the home. unity.

Also, if the homeowner wishes to sell the unit later, they may have difficulty finding suitable buyers. The subsequent buyer may not be able to obtain a mortgage if the lease balance is too low.

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