3 Types of Singapore property that are hardest to sell!
Find out about the 3 types of properties that are hardest to sell, according to Aaron!
The 3 types of properties that are hardest to sell are
Top and Bottom units in a stack
1 bedders/ studio apartments
Read on for details..
Aren't you curious about the types of properties that are hardest to sell in Singapore? For both sellers and buyers alike, this knowledge would greatly aid your property-related decisions, forewarning you of potential challenges in selling.
Let's get right into it.
1. Low-floor units
Low-floor units here refer to units that are on the 2nd, 3rd or 4th floor of the block.
Especially for 2nd floor HDB units which an undesirable facing, it can almost be described as 'gone case' when trying to sell the unit. Undesirable facings include the playground, basketball court, busy roads or a bus-stop. This is due to the amount of noise that tends to affect low-floor units significantly.
For low-floor units that have a view, such as condo units facing the swimming pool, the situation is less dire. Thus, low-floor units should be generally avoided, especially for those with undesirable facings.
2. Top & Bottom Units
This category involves the condo ground level units, which usually has some form of a patio and sometimes even a private swimming pool, and penthouse units.
Ground level units have patios, balconies that are 2 to 3 times bigger than other levels and some even have private swimming pools that are the owner's personal responsibility with no links to the condo management. Penthouse units have their rooftop gardens and high ceilings, double airspace.
These units attract a LARGE number of viewings, but serious buyers are few. They attracts viewers because:
the price per square foot (psf) are low and thus feel worth it to shoppers
these units are considered rare since there is only 1 top and 1 bottom unit per stack, and this attracts many curious potential buyers.
People are also excited to see what a ground unit with patio is like, and seeing a penthouse with the high ceiling and double air space in the living room or bedroom actually can be pretty nice. Therefore, the buyers that would actually commit to purchasing such units are far and few between. They are the few that really appreciate and want these special features the units bring.
Without this special love, these units are not recommended.
3. Studio apartments & 1 bedder units
If these 1 bedder units are bought for home stay, it's fine. However, if one is looking to flip for a profit or purchase a unit to start property investing, there are a few things to note. Investors tend to start with a 1 bedder unit due to the lower price and thus require less capital as a first investment property.
However, there are things one must know regarding such units. The purchase price for a studio apartment or 1 bedder unit cannot be too high, especially if the location is not in the city centre, like orchard road. Anything in the range of 900k would be too high. Perhaps 700-800k would be the limit.
Such units are also hard to sell fast for liquidation, thus for investors looking for a quick flip and profit, be warned. Even if the price psf is lower, a unit that costs 900k would find it much harder to get sold than a unit in the range of 700k. One good point of such units is that they rent quick and fast, almost like a commercial unit that reliably yields rental.
A word of advice from Aaron, think twice if you are purchasing a studio apartment purely for investment. Especially if you need to pay additional buyer's stamp duty (ABSD) for it, then just consider a 2-bedder instead.
So there you go, we have explained the 3 types of property that are hardest to sell accordingly to Aaron, so remember his words of advice when you are considering any such units in future!
Watch the video below to hear Aaron's take on the 3 types of properties hardest to sell in Singapore and what he recommends!