The other side of Singapore’s property price rises

Singapore Real Estate

Singapore property

Prices of property in Singapore are continually on the rise, yet there are some which are still for sale below their original purchase price.

The Shin Min Daily newspaper reported that despite the recent boom in the property sector, some older condominiums – more than 10 years old in most cases – are priced about 20 per cent cheaper than newly built ones. Many of these were built and purchased around 1996 when property prices were at their height, and some are now on sale at below their 1996 price tags.

Property agents told the newspaper that for about 20 per cent of the houses that were built in that period, the resale price is still lower than what the owners paid in 1996/7 – even for those in good locations and close to transport links and local amenities.

One of these under-valued condominiums, the newspaper highlighted, is Bishan 8. Attracting long queues of interested buyers when it debuted in 1997, units were priced at around S$1,100 (US$800) per sq ft. In June, one of the units was sold for S$912 (S$663) per sq ft. For an average sized unit the owner would be realising a loss of about S$220,000 (US$160,000)

PropNex Chief Executive Officer Mohd Ismail told the newspaper that with new developments being pushed out all the time, home buyers have more than enough choice and many prefer the new apartments, while Ngee Ann Polytechnic real estate lecturer Nicholas Mak felt that buyers may find the older condominium’s design and facilities outdated.

SOURCE: Property-Report.com

 
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