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 Buying Tips Opinion

The Impact of a Real Estate Agent on Your Property’s Selling Price

Jayson Ang – August 9, 2023 –

TLDR In the world of real estate, the value of property agents lies in their ability to create competition among...

Mandarin Top 5

5 Things to Know About the Singapore Property Tax System

Jayson Ang – June 18, 2023 –

5 Things to Know About the Singapore Property Tax System Here are 5 things you need to know about the...

Mandarin Top 5

Discover Singapore: 5 Must-See Attractions for a Culture Lovers’ Paradise

Jayson Ang – April 18, 2025 –

Singapore, a bustling metropolis in Southeast Asia, is a melting pot of cultures and traditions that offers a unique blend...

All Blog Posts Buying Tips

What Hidden Costs Are There When Selling Your House?

Jayson Ang – July 7, 2023 –

TLDR When selling your house, be prepared to cover expenses such as outstanding home loans, legal fees, property agent commissions,...

All Buying Tips

Tips for Young Adults to Begin Saving for Their Future Home

Jayson Ang – August 5, 2023 –

TLDR When aiming to purchase a home, it is crucial to gain knowledge about the buying process and track your...

Mandarin Top 5

Singapore’s Property Insights : Where to Find 5 Hidden Gems?

Jayson Ang – June 14, 2023 –

Singapore's Property Insights : Where to Find 5 Hidden Gems? With its booming economy, vibrant culture and attractive regulations, Singapore...

All Buying Tips Opinion

Pitfalls of Owning a Boutique Condo: 5 Insider Insights You’ll Wish You Knew Earlier

Jayson Ang – May 19, 2024 –

TLDR When considering boutique condos, be mindful of potential drawbacks such as dominating families influencing rules, lack of privacy due...

All Buying Tips

Should You Make A Partial Prepayment On Your Home Loan In 2025?

Jayson Ang – September 24, 2025 –

TLDR Partial prepayments on home loans can lower your monthly payments and reduce long-term interest, but the decision isn’t always...

All Buying Tips

Here’s How Property Data Can Be Misleading: Navigating Through Common Misunderstandings

Jayson Ang – April 14, 2024 –

TLDR When comparing property prices, discrepancies can arise due to various factors like timing of purchase, scarcity in niche projects,...

All Buying Tips Opinion Selling Tips

The Unforeseen Impact on Your Home Loan in Singapore if Your Spouse Passes Away

Jayson Ang – September 25, 2026 –

TLDR The death of a co-borrower in Singapore can trigger complex home loan challenges beyond simply taking over repayments. Banks...

All Buying Tips

The Numbers Behind Why Age 30–35 Is Prime Time to Upgrade from HDB to Condo

Jayson Ang – October 1, 2026 –

TLDR Upgrading from an HDB flat to a condominium between ages 30–35 is often considered optimal due to financial stability,...

Mandarin Top 5

Discover Singapore: 5 Must-See Attractions for a Culture Lovers’ Paradise

Jayson Ang – June 21, 2025 –

TLDR Singapore stands out as a top destination for culture lovers, offering a rich blend of heritage and modernity through...

All Blog Posts Buying Tips

4 Simple Strategies to Help Future Homeowners Save Money

Jayson Ang – July 15, 2023 –

TLDR When it comes to being a new homeowner, it's essential to prioritize regular maintenance to avoid costly repairs down...

All Buying Tips Top List

Finding the Perfect Match: Top 20 : A Guide to Choosing the Best Property Agent in Singapore

Jayson Ang – December 17, 2022 –

TLDR When it comes to buying or selling real estate in Singapore, having a professional and knowledgeable property agent is...

Mandarin Top 5

The Secret Strategies of Singapore’s Property Tycoons: Lessons You Can Learn

Jayson Ang – April 26, 2024 –

The Singapore property market has always been a hot topic for both locals and foreign investors. With its stable economy,...

Mandarin Top 5

Top 5 Surprising Benefits of Investing in Singapore Real Estate for Foreigners

Jayson Ang – October 27, 2024 –

Singapore, a thriving city-state in Southeast Asia, has become an attractive destination for foreign investors looking to diversify their investment...