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 Opinion Reports

NUS Real Estate Survey Reveals Growing Optimism Among Industry Leaders

Jayson Ang – January 17, 2025 –

TLDR A recent survey by the National University of Singapore (NUS) highlights increasing optimism among real estate industry leaders. The...

All Blog Posts Opinion

Singapore’s Population Hits 6.11M — What It Means for Housing Demand

Jayson Ang – April 10, 2026 –

TLDR Singapore’s population has reached a record 6.11 million, driven mainly by non-residents rather than local births. With fertility at...

All Opinion Selling Tips

Punggol Northshore HDB Flats Reaching MOP: Navigating the Resale Window

Jayson Ang – January 26, 2026 –

TLDR In 2025, around 1,765 HDB flats from Northshore Residences I & II and Northshore StraitsView in Punggol’s Northshore will...

All Opinion

The Johor-Singapore Special Economic Zone: A New Chapter, Not Just “Iskandar 2.0”

Jayson Ang – April 26, 2026 –

TLDR The Johor-Singapore Special Economic Zone (JS-SEZ), launched in January 2025, is a bilateral effort aimed at sustainable economic growth...

Mandarin Top 5

Retiring in Singapore? Here’s Where to Find the 5 Best Property Investments for Comfort and Security!

Jayson Ang – March 22, 2024 –

Retirees have unique needs when it comes to property investments. They require properties that offer comfort, security, and easy access...

All Blog Posts Buying Tips

Learn How To Negotiate For The Best Price When Purchasing a Resale HDB Flat

Jayson Ang – February 17, 2023 –

Navigating the complexities of purchasing a resale HDB flat requires honing negotiation skills and market awareness. Understanding property valuations, seller...

All Blog Posts Buying Tips

When Is the Right Time to Sell Your House?

Jayson Ang – December 31, 2022 –

TLDR When deciding to sell your house in Singapore's competitive real estate market, timing is crucial. Selling during a seller's...

Mandarin Top 5

Top 5 : Most Profitable Neighborhoods To Invest In For Singapore Property Investment 2025

Jayson Ang – April 30, 2025 –

As the global economy continues to recover, the real estate market in Singapore remains a promising investment opportunity for savvy...

All Opinion

A Milestone for Singles: New HDB Rule Prioritizes Proximity to Parents

Jayson Ang – July 17, 2026 –

TLDR The upcoming Family Care Scheme (FCS), launching mid-2025 in Singapore, prioritizes singles applying for BTO flats near their parents,...

All Blog Posts Buying Tips

What’s The Difference Between An Offer To Purchase And An Option To Purchase?

Jayson Ang – May 29, 2023 –

TLDR Understanding the crucial difference between an Offer to Purchase and an Option to Purchase (OTP) is vital when buying...

Mandarin Top 5

Top 5 : Best Karting Circuits in Singapore

Jayson Ang – December 21, 2024 –

Singapore, a bustling city-state known for its modern architecture, cleanliness, and vibrant culture, is also home to a thriving karting...

All Buying Tips Opinion

New Condo Sales Surge: Decoding Singaporeans’ Enthusiasm Despite “High” Prices

Jayson Ang – January 14, 2026 –

TLDR Recent strong condo sales in Singapore, including Emerald of Katong’s 99% take-up during launch, challenge perceptions of unaffordability. Key...