Buying A Condo As A Single, Should I Buy A Resale EC Or Condo?

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:

1A. 1BR Freehold located near MRT (Sky Green ~750-780K)

Pros:

• Freehold, thus not vulnerable to lease decay
• Quite centrally located and near Tai Seng mrt station + nearby malls & amenities
• I like the vibe of the development and its facilities (there is a rooftop pool)

Cons:

• Nestled within industrial area
• Nursing home is under construction just beside the development – not sure if this will be a con for future buyers
• No green spaces nearby (having parks within walking distance of my future home is very important to me)

1B. 1BR 99-years located near MRT (Thomson Three ~750-780K)

Pros:

• Very centrally located and I personally like the Thomson area + nearby malls & amenities
• At the doorstep of the new Upp Thomson mrt station!
• Many green spaces nearby (e.g. Windsor park, macritchie park)
• not many other comparable developments nearby thus reducing competing supply?

Cons:

• Vulnerable to lease decay, especially if I’m only planning to sell 8 years or later, by then there will only be 82 years left – will effects of lease decay have kicked in by this time?

2A. 2BR EC approaching 5-year MOP (e.g. The Amore/ The Topiary/ Bellewoods/ The Vales ~800-850K)

Pros:

• Given EC status, there might be more room for price appreciation upon reaching 10 year privatisation mark
• Lower PSF price compared to options 1A & 1B
• 2BR and larger unit size may appeal to a wider resale audience e.g. singles + small families

Cons:

• ECs tend to be in more far-flung locations and further from mrt – would this also impact resale potential? esp after the ECs privatise and its prices gap up to become more comparable with other non-ECs

2B. 2BR non EC 99-years (e.g. Parc Rosewood/ Ripple Bay ~800K)

Pros:

• Lower PSF price compared to options 1A & 1B
• 2BR and larger unit size may appeal to a wider resale audience e.g. singles + small families
• I do quite like the vibe and facilities of the developments + the area surrounding the developments feel less densely populated, which I appreciate

Cons:

• Similar cons to ECs – the developments tend to be further from mrt and less accessible
• Lease decay

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 2-3 years.

Looking forward to your thoughts and advice on what my best bet potentially is among the 4 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!

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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 8 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.

Sky Green:

Pros:

• Only condo development in the locality, buyers looking to stay in the Tai Seng/MacPherson vicinity will consider this project.
• Freehold
• Decent facilities for a low density development. (Tennis court, Gym , Sky terrace)
• Basic amenities and MRT station within walking distance.

Cons:

• Stacks facing Macpherson Road directly will face road noise.

This year, 6 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 2 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 1 bedder layout is mostly squarish and efficient. Decent living & dining size, able to fit in a 4-seater dining set. Neat Jack & Jill bathroom – so guests can easily enter the bathroom without having to access through the bedroom.

Thomson Three:

Pros:

• Walking distance to amenities (Thomson Plaza)
• Walking distance to Upper Thomson MRT station and close proximity to future dual-line Bright hill MRT station.
• Decent facilities
• Very little supply of one bedders in the locality; less competition.
• Within 1Km to Ai Tong School
• Close to nature.

Cons:

• 1 bedder stacks faces HDB blocks or multi-storey carpark; privacy would be an issue here especially for low to mid floors.

This year, 3 out of 23 transactions are from the One bedder units with prices transacted between $710-750k. The price of the 1 bedders have appreciated well over the years and the majority of first hand owners have profited from it. With the lack of 1 bedders in the locality, it will be less of competition if you are looking to exit in future.

Layout wise; the 1 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.

Parc Rosewood:

Pros:

• Affordable quantum for a 2 bedders unit
• Low rise development with great facilities, 10 Swimming pools!
• Riding on the Woodlands transformation over the years.
• Close proximity to The Woodgrove for basic amenities

Cons:

• Away from MRT station, 3 bus stops to Woodlands interchange.
• Small size 2 bedders, unit only comes with 2 bed 1 bath configuration. Some family profile may not even consider it.

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 2 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 1 bathroom hence families may not even narrowed Parc Rosewood as their choice if they are in the search for 2 bedders.

Despite the small unit size, the unit comes with an In-unit household shelter which is great for storage purposes.

Ripple Bay:

Pros:

• Quite a few 2 bedder stacks are sea facing
• Great facilities with sea view Gym!
• Ample outdoor green space in the vicinity.
• Amenities to Downtown East within walking distance

Cons:

• Away from MRT station, feeder bus to get to MRT station.

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 2 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.

EC choices:

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.

Conclusion:

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.

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