House hunting as a single: Should you buy a resale EC or a condo?
![House hunting as a single: Should you buy a resale EC or a condo?](https://media.asiaone.com/sites/default/files/styles/article_main_image/public/original_images/Oct2021/20211015_pool_stackedhomes.jpg?itok=70_x70ki)
I have been reading your articles for a while and find them very insightful. Would like to get your opinion on my situation.
I’m currently 27 and single (not eligible for HDB) and am looking for an own-stay condo unit within the budget of ~800K. My plan is to sell off the condo unit by the time I reach 35 and downgrade to HDB. In short, I am keeping future resale potential and capital appreciation top of mind.
I’ve been viewing several property developments (>10 developments) in the past couple of months and narrowed down my options to the following:
Pros:
Cons:
Pros:
Cons:
Pros:
Cons:
Pros:
Cons:
I have done more homework on narrowing down my options for 1A & 1B and less on 2A and 2B, but from what I’ve researched so far, the recent transactions of the listed developments seem healthy.
I am wondering if there are any additional aspects I should consider and any blind spots I missed out on. At the end of the day, considering my limited budget,
I would like to prioritise future resale potential and price appreciation. I am not considering new launches/soon to be TOP-ed because 1) I find the prices too high and 2) I would like to move in quite soon instead of waiting another two - three years.
Looking forward to your thoughts and advice on what my best bet potentially is among the four options (or are there alternatives I have not yet considered? Or is price appreciation not a realistic goal in my situation + timeline?)
Thank you for your time!
Hey there,
Thank you for writing to us and thank you for sharing your intended purchase. All the projects that you shortlisted are decent, great analysis done as well!
The projects you have shortlisted are located in different parts of Singapore, and since the purchase is for your own stay for the next eight years, you may want to narrow it further to a location closer to work or family. Of course, it also depends on your preference. Value retention and layout efficiencies are some of our considerations. Here are some of our thoughts on the projects that you have shortlisted.
Pros:
Cons:
This year, six out of 15 transactions come from the One bedder units with prices transacted between $730-770k.
Based on the data below, we can see that first hand buyers that bought in 2012 has gained $60-$75,000 with two unprofitable transactions over the course of 5-8 years, indicating gradual appreciation. As it has a freehold status, we think it’s more for the long term and value retention.
Layout wise; the one bedder layout is mostly squarish and efficient. Decent living & dining size, able to fit in a four-seater dining set. Neat Jack & Jill bathroom – so guests can easily enter the bathroom without having to access through the bedroom.
Pros:
Cons:
This year, three out of 23 transactions are from the One bedder units with prices transacted between $710-750k. The price of the one bedders have appreciated well over the years and the majority of first hand owners have profited from it. With the lack of one bedders in the locality, it will be less of competition if you are looking to exit in future.
Layout wise; the one bedder layout is rather unique with lots of windows which is great for ventilation – plus it allows natural light in, hence brightening up the whole space. Decent bedroom size tucked in a corner and great bathroom design as well.
Pros:
Cons:
This year, 13 out of 73 caveats are non-penthouse Two bedders (581-775sqft) with price transacted between $625k -$748 888. There are also resale to resale transactions that exited with a small profit.
As there has been no new launch in the district for the past few years, resale transactions have remained healthy with gradual appreciation. Adding on, quantum is low for a decent size two bedders together with the future master plan for Woodlands, there may still be room for appreciation depending on market sentiments.
Layout wise; though it is squarish and well laid out, the bedrooms are on the smaller side. Unit comes with only one bathroom hence families may not even narrowed Parc Rosewood as their choice if they are in the search for two bedders.
Despite the small unit size, the unit comes with an In-unit household shelter which is great for storage purposes.
Pros:
Cons:
This year, 17 out of 45 transactions comes from the Two bedders (764-786sqft) with price transacted between $735-$925k. Most of the Two bedder stacks enjoy panoramic sea views or inward facilities views. It is also close to Pasir Ris park as well. Decent quantum for a good size two bedders which comes with two bath thus open up to family profile if you are looking to exit in future.
Layout wise; decent size snd efficient layout. Good master bedroom size with bathroom ventilation window in the master bathroom. No wastage walkway entrance with ample kitchen cabinet space as well.
As the soon to MOP ECs listed are located in different parts of Singapore (Sengkang, Woodlands, Punggol) they cater to mostly an own stay profile.
It may be best to pick an EC which is closer to amenities and MRT station.
To be fair, there are some ECs which is not too far off from amenities and MRT station.
The Vales in Sengkang as an example is located in close proximity to Sengkang Central for amenities and transport nodes. It is also close to Sengkang Riverside Park. Non-hospital and LRT track facing stack would be a better pick for an easier exit.
It would also be best to enter newly MOP ECs as early as possible as your transaction will likely set the benchmark for the development hence there will be a gradual increase in price, especially in the first few months upon MOP before price stabilises. Thus leaving some room for future appreciation.
There is no one size fits all when it comes to own stay purchase.
More on your lifestyle and preferred location. When it comes to buying off resale, the best is to do a site recce around the area on top of the development itself and imagine yourself staying for the area for the next few years. Proximity to your workplace may also be considered as a factor too.
Property prices have remained resilient but buying a unit that you love is more important than just appreciation. Adding on; price appreciation and transaction volume also depend on overall market sentiments.
This article was first published in Stackedhomes.