Your search results

Singapore Homebuyers: Finding Hidden Value in ‘Undesirable’ Property Traits

Posted by Jayson Ang on June 15, 2025

| 0

TLDR

Many perceived drawbacks in Singapore’s property market—such as mortgage lock-ins, leasehold status, west-facing units, nearby construction, inefficient spaces, and older car parks—can actually become opportunities for savvy buyers. For example, mortgage lock-ins can secure lower interest rates if you don’t plan to refinance soon; leasehold properties offer strong rental yields without the premium of freehold status; and west-facing units may not matter for those out during peak sun hours. Construction disruptions are often temporary and can lead to long-term gains through improved amenities, while features like bay windows and planter boxes can be creatively repurposed. Older condos provide more parking, addressing a growing shortage in newer developments. Ultimately, what’s seen as a negative by some can be a chance to save money or find a home that perfectly fits your lifestyle—but always consider how these factors may impact resale value if investment returns are your main priority.

In real estate, perceived drawbacks can sometimes be opportunities. What one buyer considers a deal-breaker, another might see as a chance to save money or find a property perfectly suited to their lifestyle. Let’s examine how some commonly perceived negatives can actually be advantages for savvy Singapore homebuyers.

1. Mortgage Lock-ins: Not Always a Trap

Lock-in periods, during which early refinancing incurs a penalty (often 1.5% of the outstanding loan), are generally viewed negatively. However, loans without lock-ins typically come with higher interest rates, effectively charging for the flexibility to refinance.

But consider scenarios where refinancing is unlikely. For instance, if interest rates are generally rising, or if a borrower has little remaining to repay or simply dislikes the hassle of chasing lower rates, a lock-in becomes irrelevant. In such cases, accepting a lock-in for a lower interest rate can be a smart financial move. Similarly, features like early repayment options may be unimportant if you don’t plan to sell for decades.

2. Leasehold vs. Freehold: Rental Strategies

Tenants primarily care about property condition and amenities, not tenure. There’s no inherent advantage to renting a freehold property, so paying a premium for it doesn’t translate to higher rental income. For landlords, a leasehold condo can be more advantageous. While freehold properties command a premium of 15-20%, they don’t necessarily yield higher rents. An older leasehold property can offer a lower purchase price while still fetching comparable rental rates.

For example, People’s Park Complex, a leasehold development built in 1972, offers one-bedroom units for as low as $580,000 (March 2025 transaction). Despite its age and leasehold status, its central location near Chinatown MRT and the CBD ensures high occupancy rates and good rental yields.

3. West-Facing Units: Lifestyle Considerations

West-facing units are often shunned due to afternoon sun exposure and increased air conditioning costs. However, this drawback is highly dependent on lifestyle. If you’re away from home during the hottest hours (e.g., working a typical office job), the western exposure becomes a non-issue. Renters with similar schedules may be willing to pay the same market rate for a west-facing unit, especially if other factors are favorable. This allows you to purchase a less desirable unit at a lower price without experiencing the downsides.

4. Construction Zones: Short-Term Pain, Long-Term Gain

Nearby construction can be disruptive, but it’s often temporary. Once completed, a new mall or MRT station can significantly enhance convenience and rentability. The impact of a new condo development is less clear-cut. While some see it as increased competition, it can also introduce desirable amenities and raise the overall desirability of the area. For example, the upcoming Bayshore GLS plot, while adding competition to existing condos like Costa Del Sol, also brings a much-needed mall to the area. Over time, new launches can also help raise overall prices, benefiting existing resale projects.

5. Inefficient Spaces: Planter Boxes and Bay Windows

Planter boxes and bay windows were unpopular during the 2010s, but some homeowners have found creative ways to utilize them. Bay windows can be transformed into reading nooks or seating areas, and integrated with custom cabinetry for storage. Some homeowners specifically seek out planter boxes, particularly on lower floors, as they provide a natural privacy screen. Others appreciate having greenery, especially those transitioning from landed properties. Planter boxes can also be less susceptible to pests compared to ground-level gardens.

6. Older Car Parks: Ample Parking

Older condos often have uncovered or partially sheltered car parks, which can be inconvenient. However, they also tend to offer a significantly higher number of parking lots per unit compared to newer developments. Recent regulations have lowered minimum parking provisions for new condos, especially those near MRT stations. Some newer condos may have fewer than one lot per unit, or even lack visitor parking. For families with multiple vehicles, the inconvenience of an older car park layout may be a worthwhile trade-off for ample parking.

Investment vs. Lifestyle

What constitutes a drawback is subjective and depends on individual needs and priorities. A perceived disadvantage can be an opportunity to save money and find a property that perfectly aligns with your lifestyle. However, if resale gains are a primary focus, consider how these factors might affect future buyers. While you may not mind a west-facing unit, future buyers might, impacting resale value. Weigh immediate savings against long-term resale considerations.

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …

All

Mortgage Interest : The True Cost of Buying and Owning Properties in Singapore

Jayson Ang – March 16, 2023 –

TLDR When considering buying a property in Singapore, it's crucial to understand the true costs and risks involved. High monthly...

All Buying Tips

What Is Cash Over Valuation in HDB (COV)

Jayson Ang – November 8, 2023 –

TLDR Cash Over Valuation (COV) in HDB resale flats occurs when the purchase price exceeds HDB's valuation. COV cannot be...

Mandarin Top 5

Top 5 : Questions Should Investors Be Asking Before Investing In Singapore’s High-End Rental Market

Jayson Ang – February 1, 2025 –

Singapore's high-end rental market has been a hot topic of discussion among investors worldwide. With the city-state's robust economy, excellent...

All Buying Tips Opinion Selling Tips

Property Market: Buyer’s Paradise or Seller’s Dreamland?

Jayson Ang – July 24, 2024 –

TLDR The property market in Singapore post-Covid has seen a surge in HDB and private property prices, with a noticeable...

All Buying Tips Selling Tips

Singapore Homebuyers: Finding Hidden Value in ‘Undesirable’ Property Traits

Jayson Ang – June 15, 2025 –

TLDR Many perceived drawbacks in Singapore’s property market—such as mortgage lock-ins, leasehold status, west-facing units, nearby construction, inefficient spaces, and...

All Blog Posts Buying Tips

The Advantages and Disadvantages of Purchasing an Auction Property in Singapore

Jayson Ang – January 13, 2023 –

TLDR When considering purchasing a property through auction in Singapore, remember that you can potentially get a great deal below...

All Blog Posts Buying Tips Opinion Reports

What Difference in One Year After the ABSD Hike in April 2023?

Jayson Ang – December 7, 2024 –

TLDR The recent hike in ABSD rates, especially the increase from 30% to 60% for foreign buyers, has dramatically affected...

All Opinion

What Might Occur If We Ease Property Cooling Measures?

Jayson Ang – July 21, 2025 –

TLDR To assess if Singapore’s property cooling measures are working, compare our actions with China, which is applying the opposite...

Mandarin Top 5

Top 5 Factors : Why Not All Properties Appreciate Steadily

Jayson Ang – January 20, 2025 –

Real estate has long been considered a lucrative investment option, with the potential for significant returns. However, not all properties...

All Buying Tips Opinion

Beyond Buying: Innovative Strategies for Property Investment Success

Jayson Ang – September 14, 2024 –

TLDR The world of property investment and real estate trends offers vast opportunities. Stay informed with effective property investment strategies...

Mandarin Top 5

Singapore’s Urban Landscape Transformation: 5 Key Things You Need to Know

Jayson Ang – March 17, 2024 –

Singapore's urban landscape has undergone significant changes over the years, with the city constantly evolving to create a sustainable and...

Mandarin Top 5

Top 5 : Places to Learn About Singapore’s History

Jayson Ang – February 13, 2025 –

Singapore, a bustling metropolis known for its modernity and multiculturalism, is also a treasure trove of rich history and heritage....

All Blog Posts Buying Tips

Quick Guide for Condo Sellers: Timeline to Sell Condo in 2023

Jayson Ang – July 9, 2023 –

TLDR When selling a condominium in Singapore, understanding the critical steps is key. First, ensure you are not liable for...

Mandarin Top 5

The 5 Secrets To Successful Singapore Property Investing Revealed

Jayson Ang – July 4, 2024 –

The vibrant property market in Singapore has attracted numerous investors and speculators looking to profit from the nation's thriving conditions....

All Blog Posts Opinion

How Can Real Estate Investment Help You to Combat Inflation?

Jayson Ang – January 28, 2023 –

TLDR When it comes to real estate investments in Singapore amidst rising inflation rates, consider strategies such as capitalizing on...

All Buying Tips

Integrated Developments: Do They Live Up to the Hype? Check Out These Five Factors

Jayson Ang – March 3, 2024 –

TLDR Integrated developments in Singapore offer a one-stop solution for residents by combining residential, commercial, and transport elements in one...

All Buying Tips Selling Tips

Discovering the Response of Private Property Owners towards the 15-Month Wait-Out Phase

Jayson Ang – August 25, 2023 –

TLDR The blog post discusses the impact of the 15-month wait-out period cooling measure on private property owners in Singapore....

All Opinion

Why En Blocs Often Fail to Succeed

Jayson Ang – April 26, 2024 –

TLDR In this blog post, the focus is on the challenges and complexities of en-bloc transactions in Singapore's property market....

All Buying Tips

Essential Steps for Safely Purchasing Your First Home in Singapore

Jayson Ang – February 20, 2024 –

TLDR When considering buying your first property in Singapore, start by assessing your budget and qualifying for a permissible loan....

All Blog Posts Buying Tips

An Essential Guide to Buying a Home in Singapore 2023

Jayson Ang – January 17, 2023 –

TLDR When navigating the complexities of purchasing a property in Singapore, ensure you meet eligibility criteria, consider affordability factors, and...

1 2 3 … 32 Next »