TLDR
Properties in Singapore may linger on the market due to several key factors. Small boutique developments face price volatility, while mega-developments suffer from intense competition amid many listings. Tenanted units deter most buyers due to viewing difficulties and untidiness. Multiple decision-makers, especially co-owners, can stall or derail sales. Sellers resisting basic maintenance or staging risk lower offers and longer sales times. Missing or inaccurate floor plans, common in older properties, reduce buyer confidence. Unconventional layouts limit the buyer pool and require niche marketing efforts. Buyers should consider these challenges to avoid future resale problems, especially when co-owning. Sellers can improve outcomes by addressing repairs, staging, and clear communication with agents. Ultimately, careful planning and professional advice are crucial for navigating Singapore’s complex property market effectively.
Real estate agents often face a delicate task when informing sellers that their property might be a challenging sell. While bluntness risks alienating the client, tactfulness can obscure critical issues. This article explores common reasons why some properties in Singapore remain on the market longer, even when demand is high, including factors agents might be reluctant to highlight directly.
Note to Buyers: Even if you’re not selling, understanding these points is crucial for avoiding properties that might be difficult to offload in the future. Also, consider carefully who co-owns your property, as this can lead to complications.
This factor is essential to consider if you’re drawn to the perceived exclusivity of small projects or the lower entry costs of large ones.
While a small niche of buyers prefers tenanted units (e.g., specific investors in certain areas like Geylang walk-ups), for the vast majority of the market, tenanted properties are harder to sell.
When multiple individuals, both officially and unofficially, are involved in the selling decision, complications can arise. One realtor recounted a semi-detached house sale in Eunos that was aborted after the seller’s grandmother, who hadn’t been consulted beforehand, objected to the “modern stoves” in the proposed new condo. Such scenarios waste marketing efforts and prolong the sales process, sometimes even leading to the property being pulled from the market entirely.
Another agent described a nightmare transaction involving three co-owning siblings whose constant disagreements derailed every decision. If you plan to co-own a property, carefully consider potential future conflicts; accepting financial assistance from family now might mean ceding control over future sale decisions.
Some sellers are unwilling to invest in even basic repairs or staging their property. They might refuse to fix plumbing issues or apply a fresh coat of paint, even when such improvements would significantly boost their sale price. One realtor cited a case where a client refused to spend $15,000 on repairs that could have yielded an additional $400,000.
Sellers often expect agents to shoulder these costs, leading to listings stagnating and frequent agent changes. While some clients may genuinely lack the funds for renovations, a candid discussion with your agent about your financial situation can lead to creative solutions. Generally, investing in staging and minor renovations can result in substantially higher offers that far outweigh the initial expense.
This issue is more prevalent in older properties, particularly walk-ups or landed homes built before the 1970s, where official floor plans may not exist. This creates a significant hurdle for agents, as potential buyers require detailed information beyond photographs to assess the property’s potential. Buyers need to know which walls can be moved, how many people can dine comfortably, and if rooms can be merged, often requiring consultation with contractors or interior designers. Without this crucial information, buyers are likely to lose interest.
Another problem arises when the physical layout of the property doesn’t match the documented floor plan, suggesting unauthorized modifications by previous owners (e.g., unapproved mezzanine floors or attic spaces). Buyers are wary of inheriting such issues, as they become responsible for rectification and may face complications with authorities or even be unable to sell the property until compliance is achieved.
Properties with unusual layouts, such as wedge-shaped rooms, curved walls, or exceptionally long hallways, can be challenging to sell. These features often necessitate custom carpentry and can be inefficient in terms of space utilization. While some buyers appreciate unique designs, finding such a niche buyer can significantly extend the sales timeline.
Other challenging layouts include triple-key units (a single unit divided into three separate sub-units), extremely small one-bedroom units (under 450 sq. ft.), or highly customized interiors (e.g., merging three bedrooms into one large space, or heavily partitioning a unit for multiple unrelated tenants). These configurations appeal to a very specific demographic or those willing to invest heavily in extensive renovations, requiring agents to expend considerably more time and effort to locate suitable buyers.
If you intend your home to be a “forever home,” feel free to personalize it to your heart’s content. However, if resale is a consideration, it’s prudent to approach radical modifications with caution.
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.
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