Condominiums are usually seen as expensive and luxurious private properties that Singaporeans continuously aspire towards. The thing is, though, not all condominiums have to be expensive – in our YouTube video. We covered three affordable condominiums that all cost less than or around half a million dollars.
However, the key question is: are they really worth buying? The scope is a little wide with this question, so we’ve narrowed it down to the following:
Based on the following age groups, 20-35 years old, 35-55 years old, and 55 years old and above. Are cheap condominiums truly worth its value?
Before we begin the article, you might ask, why those three age groups specifically? That’s because we understand that individuals of different ages have different priorities.
A. Age 20-35 years old
More specifically, younger couples and individuals in the 20-35 years old age group are most likely to be looking to buy their first property, and are looking at condominiums either because they have failed to obtain a BTO flat, or because they are not willing to buy a resale HDB flat.
Most people in this age group are likely to be unable to afford more expensive condominiums. Though, due to the fact that their incomes are likely to be entry-level pay.
B. Age 35-55 years old
Meanwhile, middle-aged folks in the 35-55 years old age group might be looking to upgrade their current property to a newer, bigger one, perhaps with more amenities.
C. Age 55 years old and above
Lastly, those in the silver generation that are 55 years old and above could be looking to downgrade into a cozy retirement property after their children have moved out of their previous house.
With that being said, let’s dive into the three factors that we believe best answer the question. Should you buy a cheap condominium?
1. Size
The first factor we’ll be addressing, of course, is size.
A. Age 20-35 years old
First, let’s take a look at this factor from the perspective of younger couples and young graduates that may plan on having children in the future. Most cheap condominiums are on the smaller side, and thus may not be suitable for their future needs and plans.
Most 4-room HDB flats are about 95 sqm in size, compared to most cheap condominiums that are 45 sqm in size. The size of the condominiums may thus not be ideal in the future.
On the flip side, couples that have no intention of having children. Or perhaps singles in this age group that can afford such a price point, may find that cheap condominiums are ideal for their living situation.
Condominiums are able to offer great amenities and possibly more privacy than HDB flats, and have the potential to be a great investment property for first-time homeowners. If we disregard the smaller size of most cheaper condominiums.
Moreover, singles could also choose to buy such a unit, and continue staying at their family home while renting out this property for the first few years, before moving back in once the mortgage has been covered by rental income.
B. Age 35-55 years old
Secondly, for middle-aged folks, regarding size, there are two key problems that we should consider.
The first one, like above, is if there is enough space for children to live in. Those in this age group may typically already have children. They have to keep in mind that moving into a condominium may not necessarily always be an upgrade.
If size is the key factor that holds the most sway in their decision-making process. There are resale HDB flats out there that are actually bigger than condominiums, that may be cheaper in price as well.
The second problem would be the fact that as the parents of those in this age group grow older, they may need more care. If the situation arises where one’s elderly parents may need to move into the same home so that they can be taken care of more easily, the unit may then again be too small.
In both these cases, we see the importance of having a larger house when taking into consideration one’s future plans and outlook. For those in this age group, cheaper condominiums may not be the right fit, considering the factor of size.
C. Age 55 years old and above
Thirdly, for those older than 55 years old, the size of cheaper condominiums may just be the perfect fit for their needs. A home for elderly people that is smaller may actually be better, for a multitude of reasons. One reason would be that the elderly do not usually require much living space.
And another more practical reason would be that a smaller unit means less surface area to clean, which is something that may be a key consideration for the elderly.
2. Accessibility
The next factor we’ll discuss is location of the condominium, and its accessibility.
Most cheap condominiums are located in the Outside Central Region (OCR) districts, and also in non-mature estates. Do check out our previous video about Singapore Region.
Singapore Region Map Photo:Property Guru
This means that the area around such condominiums are likely to be less developed, and may not have many shopping malls or schools in its vicinity.
For this factor, we’ll group the first and second age groups together, to address the main problem: proximity to schools.
I. Schools
The location of the condominium plays a huge role in determining where children end up schooling. For those in the first age group, who may or may not have children in the future, they should keep this in mind if they have a specific school that they want their children to attend in the future.
Gan Eng Seng Primary School Photo: CIAP Architects
This applies for those in the second group as well. Upgrading to a cheaper condominium comes with its benefits. But this may mean that children would have to transfer schools, or their next level of education will be spent in a school in an unfamiliar neighborhood.
Moreover, for working adults who do not own a car, this accessibility might be a key factor to consider when deciding to buy a cheaper condominium, especially those with children.
II. Transportation Costs
What many forget to account for is transportation costs, which may actually offset the money saved from buying a cheaper condominium. Taking public transportation across long distances or hailing taxis to work five days a week eats into your accounts more than you think.
For the last age group, the location and accessibility of the property may not actually be a huge problem. Why do we say this?
Well, if you’re looking for a private property as your retirement home, chances are you’re already retired. This means that there’s not much of a reason for the elderly to leave their homes, other than maybe to take a walk around the neighborhood, or to venture out to the nearest wet market to pick up groceries for the week.
While the nearest shopping malls or markets may not be in close proximity to the condominium. One trip to the grocery store a week isn’t really much of an inconvenience.
This is even more so if you own a car. Perhaps one thing to consider is if there are hawker centres or coffee shops nearby. Because not every elderly is able or willing to cook every day.
All in all, we think that this factor may hinder the first two age groups the most, but doesn’t really apply to the last age group.
3. Alternatives
Lastly, the last factor we definitely have to consider is alternatives.
A. Age 20-35 years old
For the younger folks, a perfectly acceptable alternative would be a BTO flat, or perhaps a resale HDB flat.
There are definitely a lot of downsides and unpredictable factors when we talk about owning a cheaper condominium. In the first place, BTO flats are likely to be both more affordable and larger than even the most affordable condominium unit.
Even if you’ve been unsuccessful in obtaining a BTO flat for awhile, we’d still recommend a resale HDB flat instead of a cheaper condominium. In fact, just as we’ve covered in this article, we actually believe that resale HDB flats can be a better option as compared to a BTO flat.
B. Age 35-55 years old
For those in the 35-55 years old age range, your top priority right now may be simply to upgrade to a nicer property. However, we should keep in mind that condominiums have lost the prestige that used to be attached to it, as owning a condominium has become more and more common.
Large 4 Room HDB Flat
Now, a true ‘upgrade’ would come in the form of practicality. A larger HDB flat in a mature estate would be a good example. Just as we’ve covered in our article, we believe that it is possible for a larger resale HDB flat to be a better long-term investment than a cheaper condominium.
C. Age 55 years old and above
For those in the silver generation, deciding what property is going to be your retirement home is a decision that should not be taken lightly.
As we’ve covered in this article about where you should stay for your retirement home! There are a multitude of options available for you to choose from: it simply depends on what your priorities are.
For example, if you’re fine with a property that’s less luxurious and prioritise living in a house close to your children and grandchildren, a 2-room flexi resale HDB flat may be the way to go.
Contact Us
Do share your opinions on this article with us by dropping us an email ! Contacting us through our Facebook and Instagram pages. What age group do you fall under? Do you think you will still want to buy a cheaper condominium after reading this article?
If you’re still unsure of what property best suits your needs, no matter your age group. Do feel free whatsapp message or call KC at +65 8809 2889! At Home Quarters, we take all your priorities and circumstances into account before we advise you on how to sell your property, or what property we believe you should buy.
We’d be happy to provide you with various analyses, advice, and any sort of assistance you may require, whether you’re a buyer or a seller. Leave your contact details and any queries down below, and we’ll contact you ASAP.
That’s it for this article! Stay safe everybody, and remember, call Home Quarters and start packing!
