Second-hand houses are gradually losing out to the value for money of the term houses
Nov 18, 2022
By   Internet
  • City News
  • Second homes
  • term homes
  • property market
Abstract: Previously, Singapore's term homes were highly priced and second-hand prices were undervalued.

2021 may be a golden year for the secondary market, but from the beginning of 2021 to September this year, the private resale price index has risen by 18%, including 8% in the first nine months of this year alone, and the market expects a 15% increase for the year.


In September, prices continued to rise and are expected to rise 15% for the year.


Now in the resale market often encounter a problem is, obviously three months ago the same home upstairs only sold 2 million, now downstairs homeowners target price has reached 2.2 million.


Three months up 10%, really can not buy.


On the contrary, the price of the phase house is in a lagging stage. For example, the Riviere project, which will be handed over at the end of the year, has a great location, surrounded by the Singapore River.


The price has hardly increased in the past two years.


In June 2020, the three bedrooms on the 10th floor sold for $3.01 million


In September 2022, the same apartment on the 13th floor sold for $3.025 million


Similar to this kind of project that opened before the real estate market went up, because the developer did not have one or two units to sell, but a hundred or two hundred units for sale, so the price is not as responsive as the second-hand homeowners.


Compared with second-hand properties, there is another significant advantage of the first homeowner is the first-mover advantage.


In the process of a real estate transaction, the relationship between the seller and the buyer is actually a cooperative one, while it is the competition between the sellers.


If you buy a second home, the price now will be $300,000-$400,000 higher than the first homeowner, which is a disadvantage when it comes time to sell the home in the future.


If it's a term home, everyone bought at a similar price, they are all on the same starting line, and it's easier to agree on a tacit agreement on resale price.