When ‘Bad’ Property Traits Can Be A Bargain For Homebuyers In Singapore
The saying that one man’s floor is another man’s ceiling is most literally applicable in real estate. A clear manifestation of this is how, in many cases, property features considered a serious drawback may appeal to some homeowners, or may even be seen as a way to save money. Here are some situations where a supposed “negative” might work in your favour, based on your family’s lifestyle or your unique preferences:
1. Accepting lock-ins and clauses that can lower mortgage rates, when they’re not relevant to you
During a lock-in period, banks can charge you a penalty if you try to refinance. This is most often 1.5 per cent of the outstanding loan amount, but it varies between banks (and further processing fees are sometimes tacked on to it). So, for most borrowers, the impression is that a lock-in period, or a longer one like five years instead of three years, is always worse. However, mortgage brokers have told us this isn’t often the case, and sometimes they even recommend the loan with the lock-in.
Quite often, loans without lock-in periods have higher interest rates. You do pay for the freedom to refinance your loan whenever you need. But there are situations when you’re not likely to do so anyway – such as when loan interest rates are rising, and will likely do so for the coming years (there’s no point refinancing if the next loan package costs about the same, or even more).
Likewise, there are some borrowers who don’t have much left to repay, don’t like to chase lower rates, or have other reasons not to refinance in the foreseeable future. In these instances, a lock-in period is irrelevant as a disadvantage, and you may as well take it if it results in a cheaper home loan.
On a similar note, you might ignore other “loan flexibility” features you don’t need, such as being allowed to make early repayment in the event of a sale, when you don’t intend to sell for decades anyway.
2. Leasehold status, if renting it out is a big part of your property strategy
As long as the property is well maintained and facilities are adequate, tenants don’t care whether the property is leasehold. There’s no tangible advantage to leasing a freehold project, and therefore, there is no reason to pay any more for it.
For landlords, this means that a freehold condo may come with a ballpark 15 to 20 per cent premium, with no accompanying rise in rent. In fact, an older leasehold property might be more advantageous to the landlord, since it often comes with a lower price, but can still fetch rental rates close to the relevant neighbourhood.
The famed People’s Park Complex is an outstanding example of this: it’s leasehold and was built in 1972, so one-bedders here have fetched prices as low as $580,000 (a 409 sq. ft. unit transacted in March 2025). However, vacancies are rare and tenants still pay good rates, as it’s close to Chinatown MRT station and the CBD.
3. West-sun-facing units
These are often derided for sun glare, heat, and running up your air-con bills. But consider your lifestyle and the hours you’re at home: if you Work From Home, or have children who spend most of the afternoon at home, then this is definitely a drawback.
But if you leave for the office at 7 am and are back at 7 pm, then what really is the drawback? You’re not around for the hottest periods of the day anyway. This also goes for renters: a tenant who works elsewhere most of the day doesn’t care to pay more because of a better sun-facing, or may pay the same market rate even if the unit is west-sun-facing (provided other factors are still convenient.)
This can mean you can purchase in a less “premium” stack, or bargain down the resale price a bit, despite never feeling the disadvantage.
4. Properties with upcoming or ongoing construction nearby
Sure, it’s dusty and noisy now – but once the nearby mall or MRT station is complete, the temporary inconvenience will convert to easier rentability, or superior convenience. There’s also the touchy issue of what happens if the nearby construction is another condo.
Some homebuyers see another newer condo nearby as competition, and immediately take it as a bad sign. However, this isn’t always clear cut. A good example of this is the upcoming Bayshore GLS plot: on the downside, this provides a much newer contender to the older Costa Del Sol, Bayshore Park, and The Bayshore. On the other hand, it also brings in a much-needed mall (there’s none in the immediate vicinity), and makes the overall area more desirable.
It’s also worth considering that over time, new launches can help to raise overall prices in an area, thus having a knock-on effect on existing resale projects. Or at the very least, they may not have any real impact after all.
5. “Inefficient” planter boxes and bay windows
These were the bane of buyers in the 2010s, right up until recent Gross Floor Area (GFA) harmonisation. But while some decry planter boxes and bay windows as inefficient, we’ve met homeowners who’ve made the most of them and love them.
Take bay windows, for example: because these tend to protrude from larger central windows, it’s easy to expand them into reading nooks, or additional seating.
We’ve also seen cabinetry and storage spaces built into bay windows; so a good interior designer can do a lot with this otherwise inefficient feature.
As for planter boxes, we have met the occasional homeowner who specifically looks for them. In particular, some homeowners like using planter boxes as a privacy shield, especially if they’re on a lower floor (e.g., fourth or fifth floor, where someone could still ostensibly peek through the window). There are also homeowners who have moved from landed properties, who appreciate still having their own greenery.
An interesting bonus, told to us by a former landed home dweller, is that planter boxes are less susceptible to pests that eat your plants. Slugs and snails, for instance, are less likely to be found on higher floors.
6. Car parks in older condos
These are disliked because, in many cases, the car parks are not sheltered or are only partially sheltered. Some homeowners absolutely hate it when they need an umbrella to get to their car and back, especially in the end-of-year rainy season.
What some homebuyers do like, however, is the sheer number of lots you get in older projects. Back in 2019, the new Range Based Parking Provision Standards (RPPS) lowered the minimum parking provisions for condos. This wasn’t a thing that started from 2019 either: reductions already began in 2005, when condos could have 20 per cent fewer lots if they were within 400 metres of a train station.
Simply put, this means some newer condos – especially those near MRT stations or in more central locations – may have fewer than one lot per unit. Some may not even have visitor parking. This is in stark contrast to older projects, where a minimum of one lot per unit used to be the standard; and some condos even have multiple lots for each unit.
For families with multiple vehicles, this may be worth dealing with older car park layouts, or having to park further away to stay under shelter.
As you can see, what counts as a drawback may not always be so, depending on family lifestyle and preferences. Sometimes, a “disadvantage” is just an opportunity to save money for certain homeowners.
That being said, concerns may differ if your focus is on resale gains. This is where pure homebuyers differ from those with investment-oriented goals. Whilst you may not care about these drawbacks, other future buyers might – and you need to factor in the concerns of subsequent buyers in addition to (or perhaps over) your own. This has to be balanced with the immediate savings you might get.
If you’re uncertain, reach out to us at Stacked to get a better sense of what works for you. If you’d like to get in touch for a more in-depth consultation, you can do so here.
