Older condos selling at a loss

Despite the sky-rocketing property prices in Singapore, some private properties are valued below their original purchase price.

A news report indicated that even with the recent growth in the real estate market, some over 10-year-old condominiums are priced approximately 20 percent cheaper than newly developed ones.

Property prices seem to suggest that Singaporean homebuyers are likely to prefer the newest ‘flavour’ in the market.

Many of these properties were developed and acquired around 1996, when prices had also peaked. After 14 years, these properties are still valued at prices below their 1996 sale price, forcing some owners to sell at a loss.

According to property agents, the resale price of around 20 percent of the total properties built during that period is still lower than what homeowners paid in 1996 and 1997, even for properties located near MRT stations and good schools.

Among the under-valued condos is Bishan 8, located at the junction of Bishan Street 21 and Bishan Road. The project attracted many interested buyers when it was launched in 1997, with each unit priced at $1,100 psf back then.

In June, one of its units measuring about 1,162 sq ft was sold for $912 psf, which could represent a loss of about $220,000 for the owner.