Not so long ago, prices of private condominiums were creeping beyond the $1 million mark, but with new units bursting into the scene and the competition in the private property market heating up, developers and sellers alike have had to find a new pricing sweet spot.
Buyers have become more aware and sensitive to market prices ever since market data and statistics became more readily available from URA and other property news and research sources. Now, it is not unlikely to find resale private properties available at below $1 million. And some are reasonably-sized units too. Previously only shoebox apartments or one-bedders are likely to fall below the $1 million mark.
Most of the the developments with such affordable resale units are in the city fringes, including Citylights in Jalan Besar, Domus and The Tier in Novena, Wilkie 80 in Dhoby Ghaut, RiverBay in Bendemeer and RV Edge in Tanglin.
Despite the weaker property market, resale properties are still selling at 20 to 25 per cent above the prices of new units and sellers can still look forward to some long-term value appreciation. Property analysts however advice buyers to be aware of their financial commitment as buying resale properties mean the property mortgages kick in immediately and with a softening rental market, the yields may not come in as quickly or as much as projected.