Not All Condos Are Equal: Old or New Properties?

In 2007, I had 2 buyers who came to me wanting to buy properties.

The 1st buyer, against my advice, bought an older condo at Holland Peak for $2.36m. It was built in 1994. He was attracted to the space of the 1819sf 4BR condo. It was then rented out at $4.5k.

He got tired of the low yield and subsequently in 2011, he sold it for $2.2m.

In the same year, the 2nd buyer took up my advice to buy the brand new about-to-TOP 4BR unit at Montview. He paid $2m for the 1744sf sub-sale unit. Upon T.O.P. not long after, the market rent was $6.5k. His family chose to stay there till 2011. It was sold at $2.6m, making a tidy profit.

Both Holland Peak and Montview are FH properties. Both are in District 10. The former was built in 1994 and the latter 2008. Both ended up differently in terms of rental yields and capital gains.

What is the moral of the story? It is usually wiser to buy newer condos even if they are smaller and usually more expensive $psf.

It is not wrong to buy a more spacious older condo, if you are buying for own stay. But if you are looking at higher rental yields and potential capital gains, then opt for new condo.

Danny Han
Danny Han
Associate Deputy Group Director
OrangeTee & Tie Pte Ltd

Danny has been a licensed real estate agent since 2005 and has helped many in Property Wealth Planning.

Do drop him a Whatsapp message or send him an email for a discussion if you are planning to grow your property wealth.

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