Prime freehold resale homes now available at new leasehold suburban prices
Prime freehold resale homes now available at new leasehold suburban prices. The Business Times (BT) conducted searches on Singapore’s largest property portal, PropertyGuru, and uncovered nearly two dozen developments selling for less in attractive districts 9, 10, and 11.
A cross-check was also carried out to ensure that the requested prices matched the real cost. According to BT’s research, residences in the Core Central Region (CCR) may be less expensive than new leasehold properties in the Outside Central Region (OCR).
A freehold 797 sq ft 2-bedroom Sophia Residence property in District 9 is available for S$1.6 million. A 1,066 square foot 2-bedroom flat in Verdure At Holland Park in District 10 may pay S$2.2 million, while a 1,421 square foot 3-bedroom Cube 8 property on a high level in District 11 could fetch S$2.9 million. There are even more affordable freehold properties in the main areas if older condominiums are considered.
Why are buyers paying higher or equal per square foot prices in the OCR for 99-year leasehold homes?
Analysts BT spoke with cited familiarity with suburban places, closeness to children’s schools, and proximity to elderly parents as important issues, particularly for HDB upgraders who wish to stay in certain regions. The progressive payment mechanism for new launches, according to Catherine He, Colliers’ director and head of research, also allows buyers to stretch out their payments during the development period. For a resale apartment, payments are made in advance, and the mortgage begins immediately.
Furthermore, acquiring a fresh launch unit entitles the consumer to long-term price rises. “If market conditions remain steady,” he says, “the project will almost probably fetch a greater price by the time it is completed.” “Additionally, because homes took around three years to build, the Seller’s Stamp Duty (SSD) period would have ended, and buyers could lock in profits without (paying) SSD if they wanted to sell.”
The progressive payment plan also helps young couples overcome the Total Debt Servicing Ratio (TDSR), which limits a mortgagee’s total debt obligations to 55% of his or her income. According to an industry observer, the couple can pay an option fee to purchase a new launch unit and receive finance only after construction begins and progress payments begin.
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