The potential resale value of Freehold Properties - is there a shift?

In 2020, resale condominiums shot up in popularity, as increased demand and limited supply of new launches prompted property buyers to turn to the resale market. In fact, the higher prices of new launches pushed buyers to look towards undervalued resale properties instead, as they provided a lower entry point for HDB upgraders. This trend looks set to continue, and if you’re a property investor or homebuyer, you might be thinking of jumping on the bandwagon. Of course, with this comes the question – should you buy a freehold or leasehold property?

Freehold properties have long been known to be an asset for long-term, and this fact still holds true today. Freehold properties are yours to own forever, and can be passed down for generations, creating a strong legacy for you to leave behind. At the same time, you’ll have the maximum time available to collect on rental yield, making your rental returns much higher. And, freehold properties won’t suffer from lease depreciation, unlike a leasehold property, meaning there’s no concerns of outgrowing your property or of it losing its value. And, even if you’re not intending to hold your home for long, freehold properties are known to fetch a much higher en-bloc value, being quite in-demand as a valuable option for developers.

With that being said, should property investors and homebuyers consider freehold resale properties? Let’s take a look at the market trend in 2021. In the month of February, a unit in Grange Residences (freehold) brought in a whopping $3.9 million in profits, making around 112% returns on the sale!

Lest we think this was a one-time thing, the second most profitable transaction occurred in the exact same week in February, with a unit in Regency Park (freehold) selling for $6.8 million profit! And, within the same month, another unit in The Esta (freehold) sold for another $1.5 million, showing an increasing market trend towards freehold resale properties.

Of course, investing in freehold properties will likely be a long-term investment to ensure maximum returns. But, with prices rising and expected to rise further in 2021, considering a freehold resale property as your next investment might just be the way to go.

Interested in finding out more about the pros of buying a freehold condominium? We’re Pamela and Shirley, and we’d love to advise you along your property investment journey. Head over to our website at www.wonderhomesg.com, and drop us a call today!

Pamela Tan: 9457 6525

Shirley Wang: 9436 1909