Investors go for smaller freehold private apartments

Properties in prime town-centre district 9 have long been highly-valued and investment-worthy. Recent trends have pointed to increased popularity in smaller apartments in the district as leasing yields are higher and more frequent, possibly as the effect of the Additional Buyers’ Stamp Duty (ABSD) and Total Debt Servicing Ratio (TSDR) is lesser on these smaller properties.

Sophia Hill ResidencesRecent sales figures seem to indicate that location and exclusivity of properties in district 9 sufficiently triumph tenure and size. Freehold and 99-year leasehold properties seem to only have a $30 psf difference and in fact in recent launches, leasehold property prices have exceeded freehold property prices. In the long run however, freehold apartments hold higher potential and reduced risks.

Some freehold private residential developments in district 9 include The Marq on Paterson, Martin Residence, Liv on Wilkie, The Trillium, Reignwood Hamilton Scotts and Hilltops, just to name a few. The most recent addition to the 99-year leasehold properties list include Cairnhill Nine. Other similar leasehold properties in the area are Sophia Hill Residences, UP at Robertson Quay, Orchard Residences and Leonie Gardens.

UP @ Robertson QuayAs expatriates’ housing allowances shrink and as Airbnb becomes an increasingly common and popular choice for travellers, property investors are looking more into completed smaller, well-located units to start their investment dollar rolling sooner rather than later.