Breaking Through the Stalemate of En Bloc Sales
TLDR The Singapore property market faces challenges with the ongoing en bloc stalemate. Lower success rates, higher development risks, and...
Read More
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 …
Is Price Per Square Foot (PSF) Still a Reliable Metric in Singapore’s Property Market?
TLDR Price Per Square Foot (PSF) is increasingly a poor measure of property value in Singapore due to regulatory changes...
Read More
4 Fresh Trends among Young Homebuyers Could Shake Things up in Singapore’s Real Estate Scene
TLDR Younger generation in Singapore is reshaping house hunting by showing a preference for quality of life over location. Millennials...
Read More
Top 5 : Singapore’s Most Desirable Properties: A Look at the City’s Most Coveted Real Estate
Singapore, a bustling city-state known for its impressive skyline and thriving economy, is home to some of the most desirable...
Read More
Are You Ready to Take on the Singapore Property Market in 2023? 12 Reasons to Be Hopeful (Or Wary)!
2022 sure was a rollercoaster ride for the property market, and the world! From war in Europe to skyrocketing interest...
Read More
Why Seletar Could Be Singapore’s Next Up-And-Coming Property Hotspot
TLDR Seletar, once seen as a remote enclave defined by its Aerospace Park and colonial bungalows, is on track to...
Read More
Tips for Young Adults to Begin Saving for Their Future Home
TLDR When aiming to purchase a home, it is crucial to gain knowledge about the buying process and track your...
Read More
Building A World-Class Nation: Top 5 Facts About Singapore’s Developed Infrastructure
Building A World-Class Nation: Top 5 Facts About Singapore's Developed Infrastructure Singapore is known for its high standard of living,...
Read More
Planning for Retirement: Considerations for Downsizing Your Property
TLDR Downsizing your home for retirement can bring financial security, closer family ties, and new adventures. Consider the benefits of...
Read More
5 Reasons To Invest In UK Property In 2024 Instead Of Saving
TLDR Investing in UK property in 2024 offers significant advantages over saving due to the potential for long-term value growth,...
Read More
5 Reasons Why Timing the Singapore Property Market is a Risk You Shouldn’t Take
5 Reasons Why Timing the Singapore Property Market is a Risk You Shouldn't Take Entering the Singapore property market can...
Read More
Top 5 Reasons to Invest in Commercial Property in Singapore – Expert Insights!
Singapore, a thriving business hub in Southeast Asia, offers a robust real estate market with diverse investment opportunities. While residential...
Read More
3 Winning Strategies for Skyrocketing Your Property Market Profits (Including Real-Life Success Stories)
TLDR In the dynamic property market of Singapore, maximizing profit is key for sellers and investors. Three essential strategies stand...
Read More
Thinking About Investing In An Old Landed Property In Singapore? 7 Crucial Tips To Keep In Mind Before You Make Your Move
TLDR Older properties come with unique challenges due to outdated design elements, potential roofing issues, odd land shapes, basement drawbacks,...
Read More
CPF Accrued Interest On Housing: Learn What It Is and How to Calculate It
TLDR Understanding the CPF accrued interest on housing loans is crucial for Singaporean homeowners. When using CPF funds to finance...
Read More
Top 5 Bakeries in Singapore for Fresh Bread and Pastries
Singapore, a melting pot of cultures and flavors, is well-known for its diverse culinary scene. Among the many gastronomic delights...
Read More
5 Singapore Property Trends to Watch in 2023: Expert Weigh In
5 Singapore Property Trends to Watch in 2023: Expert Weigh In Top 5 Singapore Property Trends to Watch in 2023...
Read More
The Lifecycle of an HDB Flat: Essential Stages for Owners and Buyers
TLDR HDB flats in Singapore, home to 80% of residents, begin as state land acquired at fair market value. The...
Read More
Avoid These 6 Terrible Property “Tips” in Singapore
TLDR When it comes to property advice, it's crucial to be cautious of common misconceptions. For instance, schemes like the...
Read More
Common Misconceptions About Buying Property in Singapore’s Core Central Region (CCR) in 2025
TLDR Singapore’s Core Central Region (CCR) is often seen as a safe, luxurious, and exclusive property segment. However, this view...
Read More
