A newly launched condo has the potential to be highly attractive for securing tenants quickly and minimizing vacancy periods. However, compared to a fully renovated unit, an older condo may not have the same appeal and could potentially attract lower rent. That is why it is important to consider the advantages of investing in a newly launched condo, which can be found through resources such as condo launches.
It is a common practice for condos to have a 99-year leasehold, but some may only have 60 or 70 years left. The leasehold period plays a significant role in the property’s value and market demand. Purchasing a property with a shorter remaining lease term may result in difficulties in securing financing, reduced demand, and lower potential for capital appreciation. Hence, it is crucial for potential buyers to thoroughly assess the remaining lease term before committing to a purchase.
As such, these factors have made condominiums a top choice among investors who are looking for a steady stream of rental income and long-term capital appreciation in Singapore’s real estate market. Moreover, the government has implemented favorable policies, such as the Additional Buyer’s Stamp Duty (ABSD) and the Total Debt Servicing Ratio (TDSR), to regulate the market and ensure its stability. Therefore, investors must conduct thorough research and due diligence before investing in a private condo in Singapore, as it is crucial to choose a property that will bring profitable returns without any legal or financial complications.
Therefore, it is crucial for homebuyers to carefully consider the remaining lease term before making a purchase.
The real estate market in Singapore has always been a hot topic, with constant developments and launches happening throughout the year. One particular area that has been making headlines recently is the issue of 60-year leasehold condominiums. These properties, which are nearing the end of their lease, have been causing concern for potential buyers, as they are faced with the limited remaining years of ownership. However, developers have been quick to respond to this issue by launching new projects that maximize the potential of these 60-year leasehold properties. In this article, we will explore the concept of 60-year leasehold condos and how developers are making the most out of these properties.
Another approach that developers have taken is to incorporate amenities and facilities within the development that cater to the needs of the residents. This includes things like function rooms, swimming pools, and gyms, all of which add value to the property. These amenities not only enhance the living experience for residents but also increase the overall market value of the property. It is a win-win situation for both the developer and the buyers, as the developer can attract more buyers with the added amenities, while the buyer gets to enjoy the facilities while living in the property and also potentially increase the rental value of their unit.
In conclusion, while the limited remaining years of ownership may deter some buyers from investing in 60-year leasehold properties, developers have found ways to maximize the potential of these properties. With the incorporation of dual-key units and added facilities, these properties have become more appealing to buyers, and in some cases, have even increased in value. The success of projects like Lloyd SixtyFive shows that with the right strategy, a 60-year leasehold property can be a sound investment, providing attractive returns for its owners. It all comes down to understanding the market and making informed decisions when it comes to investing in real estate.
It is not just the developers of new projects that are taking advantage of the potential of 60-year leasehold properties. Some developers have also been acquiring older leasehold properties and redeveloping them into modern and well-facilitated condominiums. By doing so, they are able to extend the lease of the property and also upgrade the facilities, making it more appealing to buyers. This not only benefits the buyers but also the surrounding neighborhood, as it rejuvenates the area and adds value to the existing properties in the vicinity.
Firstly, let us understand what 60-year leasehold properties are. In Singapore, leasehold properties are typically offered on a 99-year or 999-year lease. This means that the owner of the property has the right to use it for a period of 99 or 999 years, after which the ownership reverts back to the government. On the other hand, 60-year leasehold properties have a shorter lease period, with only 60 years of ownership before the property goes back to the government. This poses a concern for potential buyers, as they will have limited time to enjoy their investment before they need to surrender it.
Many buyers are hesitant to invest in 60-year leasehold properties due to this limited lease period. However, developers have recognized this concern and have come up with creative ways to maximize the potential of these properties. One strategy that developers have adopted is to launch projects with dual-key units. These are apartments that have two separate entrances, each leading to a self-contained unit. This allows the owner to rent out one of the units while living in the other, generating a steady stream of income. This also gives the owner the flexibility to either move into the other unit or rent it out as well, allowing them to make the most out of their investment.
Some may argue that investing in a 60-year leasehold property is a risky move, as the lease period is relatively short. However, it all depends on the individual’s investment strategy and goals. With the right approach, one can make a substantial profit from a 60-year leasehold property. Additionally, the relatively lower prices of these properties may make them more attractive to some buyers, especially if the development is well-facilitated and in a prime location.
One example of a project that has successfully maximized the potential of a 60-year leasehold property is the development of Lloyd SixtyFive. Located along Lloyd Road in prime District 09, this project was built on a 60-year leasehold site. However, the developer, TG Development, has managed to create a luxurious and high-end development that includes a range of amenities such as a sky terrace, lap pool, and gym. These added facilities have attracted buyers, and the project has been well-received, with most of the units sold out within a year of its launch.