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Older freehold apartments below $1,000 psf are value-for-money buys

By Michael Lim / The Edge Property | September 18, 2015 9:00 AM MYT
The demand for older freehold apartments and condominiums seems to have picked up in the first week of August, according to caveats lodged with URA Realis from Aug 2 to 9. More than half of the completed units sold during the first week of August are either of 999-year leasehold or freehold tenure. Close to 50%of the properties in the sub-$1,000psf range were freehold rather than leasehold condos, with most of them located in the suburbs. According to property agents, this trend reflects the fact that most of the buyers today are owner-occupiers, who prefer older properties, as they tend to be larger and have more practical layouts.

From the caveats lodged, it seems that several buyers may have uncovered some of these gems, with some of the units transacted at prices either lower than or comparable to many of the 99-year leasehold projects launched recently.

One such freehold development is D-Mansions, which was completed in 1999 and comprises just nine units in a four-storey block. A 1,668 sq ft unit in the project on Dunman Lane in prime district 15 in East Coast recently changed hands for $1.3 million, or about $779 psf, according to a caveat lodged on Aug 5. The transaction price was identical to the previous owner’s purchase price in November 2010. If one were to factor in a mortgage, this would mean the seller could have incurred a slight loss.