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 Selling Tips

Why Home Staging Is Important In A Competitive Real Estate Market

Jayson Ang – May 7, 2024 –

Singapore's property scene has always been a powerhouse, effortlessly combining the new with the old. It's a real estate playground...

All Opinion

What Is The Cost Of Constructing A Landed Property In Singapore?

Jayson Ang – February 24, 2025 –

TLDR Building a landed property in Singapore can be a costly endeavor, with prices ranging from $300 to $500 per...

Mandarin Top 5

Top 5 : What Are The Key Factors That Drive Foreign Investment In Singapore’s Real Estate Market

Jayson Ang – January 2, 2025 –

Singapore, a thriving city-state in Southeast Asia, has become a magnet for foreign investors looking to capitalize on its booming...

All Buying Tips Opinion

I Wouldn’t Rely Too Heavily On Discounts Related To ABSD This Year

Jayson Ang – February 28, 2025 –

TLDR The ABSD discount arises when developers approach their five-year deadline to sell 90% of units, facing a 40% penalty...

All Buying Tips

Transforming Your Home Loan Situation with Rate Cuts

Jayson Ang – September 6, 2024 –

TLDR When comparing fixed and floating mortgage rates, the present fixed rate of 3% is favorable, but predictions hint at...

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 Buying Tips Opinion

6 Ultra-Private Condominiums in Singapore Offering Unparalleled Seclusion

Jayson Ang – June 5, 2026 –

TLDR This article highlights six luxury condominiums in Singapore that offer exceptional privacy by having no direct neighbors on the...

Mandarin Top 5

The Importance of Due Diligence in Property Investing in Singapore

Jayson Ang – April 22, 2024 –

Investing in property can be a lucrative venture, but it also comes with its own set of risks and challenges....

All Buying Tips Opinion

The Influence of Soaring Land Costs on Singapore’s Real Estate Market: A Look at Land Price Trends Since 1992

Jayson Ang – October 7, 2024 –

TLDR When it comes to understanding the fluctuations in land prices in Singapore, historical patterns reveal significant spikes and dips...

All Buying Tips Opinion Selling Tips

Will New Launch Condos See a Drop in Prices Soon?

Jayson Ang – July 12, 2024 –

TLDR The real estate market in Singapore is experiencing a trend of lackluster bids for prime properties in various locations....

All Buying Tips Opinion

2-Bedroom vs. 2+Study Units: A Decade of Performance Analysis

Jayson Ang – May 21, 2026 –

TLDR Over the past decade, 2+Study units (compact 3-bedroom layouts) consistently outperformed standard 2-bedroom units in resale gains across most...

Mandarin Top 5

Top 5 Factors : Location More Important Than Freehold Status?

Jayson Ang – March 3, 2025 –

When it comes to purchasing a property, there are numerous factors that potential buyers need to consider. While the debate...

Mandarin Top 5

5 Impacts Of The Singapore Government’s Cooling Measures On Property Investing

Jayson Ang – May 30, 2024 –

The Singapore government has implemented several cooling measures over the years to regulate the property market and prevent it from...

All Opinion Selling Tips

Is it Better to Sell Your Newly Launched Condo Before or After Completion? Here’s What the Statistics Indicate

Jayson Ang – March 14, 2025 –

TLDR Determining the best time to sell a newly launched condo involves weighing the benefits of selling before or after...

All Buying Tips Opinion Selling Tips

Surprising Shifts: Evolving Trends in Singapore’s Property Market

Jayson Ang – September 7, 2026 –

TLDR Singapore’s property market is undergoing surprising shifts in 2025, reshaping long-held assumptions. Rising land costs and cautious developer sentiment...

All Blog Posts

Singapore Private Residential Market Outlook 2023

Jayson Ang – January 8, 2023 –

TLDR The Singapore residential property market has shown resilience in 2022, with price growth in both private housing and HDB...

All Buying Tips

ANALYSIS: Unveiling the HDB Towns with the Steepest and Lowest Price Surges!

Jayson Ang – August 17, 2024 –

TLDR The real estate market for HDB flats in Singapore has witnessed significant growth, with prices reaching new highs. The...

Mandarin Top 5

5 Tips : How To Choose The Right Property Agent To Help With Your Singapore Property Investment

Jayson Ang – June 6, 2024 –

Choosing the right property agent is crucial to the success of your Singapore property investment. A good agent can provide...

All Blog Posts Buying Tips Opinion

I Decided to Pay the Additional Buyer’s Stamp Duty to Purchase a Condominium While Retaining My HDB: My Reasons

Jayson Ang – October 15, 2024 –

TLDR Despite a 20% Additional Buyer’s Stamp Duty (ABSD) for second properties in Singapore, Yang chose to hold onto his...

All Buying Tips Opinion

The New Condo Rule: How GFA Harmonization Makes New Launches “Pricier” and What It Means for Buyers

Jayson Ang – May 30, 2026 –

TLDR GFA Harmonization standardizes Gross Floor Area measurements across Singapore government agencies, removing non-usable spaces like oversized planter boxes, air-con...