A number of private homes in Singapore are going for less than S$1 million, but their location and décor may not be on par with the pricier developments. However, these properties could end up being a good deal if they are located in an area that’s set to be rejuvenated or developed.
According to Nicholas Mak, Head of Research at SLP International Property Consultancy, about 1,249 private units of 1,000 sq ft or more were sold below S$1 million from 1 January to 4 May this year.
The figure includes new and resale private and executive condominiums (ECs).
Mak added that most sales were for 99-year resale condos sited in suburban areas. Meanwhile, freehold properties were mostly located in city fringe areas such as Geylang.
Ong Kah Seng, Director at R’ST Research, said that while homes priced below S$1 million could be found in the primary and secondary market, it is rarer in the former as the rise in land prices has forced developers to offer higher psf prices and smaller units.
New homes that are at least 1,000 sq ft and priced below S$1 million are generally located in north-eastern areas like Sengkang, Hougang and Punggol.
In the first four months of 2012, there were around 74 transactions at The Minton (pictured), a 99-year leasehold condo at Lorong Ah Soo, while 36 transactions were recorded at Riversound Residence, another leasehold condo in Sengkang.
Upcoming condo developments in Pasir Ris also saw good take-up, with 24 and 12 sales recorded at The Palette and Ripple Bay respectively.
“(These areas) are more valued propositions as the north-east promises exciting future growth while Pasir Ris is an established and refreshing resort-living area,” noted Ong.
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