Yahoo Finance Condos In Central Singapore You Can Purchase At Under $1,000 psf
Prices of private homes in the Central Region have risen exponentially over the past 10 years.
Based on our previous research, prices of new launches in the area have increased by about 55% between 2008 and 2018. Meanwhile, resale condos in the region rose by roughly 68% between 2008 and 2018.
The rise in home prices will no doubt impact housing affordability for some, especially with the latest round of property cooling measures
Last year, the government acted to cool the red hot residential property market by introducing higher Additional Buyer’s Stamp Duty (ABSD) rates for some categories of residential property purchases. Meanwhile, Loan-to-Value (LTV) limits were lowered, all with effect from 6 July 2018.
Singaporeans buying their second property will now have to pay 12% ABSD, up from the previous 7%. Meanwhile, Singapore permanent residents will now have to pay an ABSD of 15%, up from the previous 10%, when they purchase a second residential property.
Unfortunately, the confluence of these factors will make owning a home in SIngapore increasingly challenging for some. The good news is, we managed to sift out a number of properties that you may still be able to purchase for under $1,000 psf. Even better, they are located within the Central Region and many of these projects are located near MRT stations.
Based on sales transactions that occurred between January 2018 and February 2019, below are some of our top picks:
Most Affordable Condos in Central Singapore In 2019
Source: EdgeProp.sg, URA
Older condos’ size and lower psf price becoming increasingly attractive to homebuyers
Based on our observation, the latest property cooling measures could have sparked interest in older, more affordable homes in the resale market.
One reason for this is because older condos tend to have larger unit sizes and a more spacious living area, Jacqueline Wong, Savills Singapore head of residential services and private office, told EdgeProp in a previous interview.
The Arcadia, one of the residential projects on our list, is located close to educational facilities such as Raffles Girls Primary School, Nanyang Girls High School and Hwa Chong Institution.
Currently, 4-bedroom units at The Arcadia are listed on EdgeProp.sg at a starting price of $3.48 million.
On the other side of the coin, older units tend to require more renovations, which could elevate costs quite significantly. For example, older properties may come with issues such as choked plumbing, yellowing walls, damp ceilings that could have resulted from air-conditioning leaks, or failing water heaters.
Complete renovation works may include carpentry, electrical wiring, plastering, flooring, painting and wet works that can add up to tens of thousands of dollars or more.
Aston Mansions, which was completed in 1998, is located less than 500m from Paya Lebar MRT station.
Remember, these costs are not included in your home loan and you will have to fork out of your own pocket, so you may want to factor in such additional costs before buying a resale property.
See Also:
Singapore Property for Sale & Rent, Latest Property News, Advanced Analytics Tools
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