IF YOU ARE scouting around for a two- to three-bedroom apartment and think you can afford only a Housing Board (HDB) flat, it is time to think twice.
Property agents say there are many old private apartments selling for about the same price as a large HDB flat.
But these are typically older, 99-year leasehold properties located in far-flung corners of Singapore such as Bukit Panjang, Loyang and Jurong. They also tend to be in fairly large developments.
For example, in June, a 1,485 sq ft unit in Loyang Valley condominium in Loyang Avenue was sold for the fairly modest price of $320,000. That translates to about $215 per sq ft (psf) for a three-bedroom unit in a project which has a lease of about 75 years left.
'It's a very reasonable price,' said PropNex Realty's senior division director, Mr Eric Cheng. 'A lot of people are focusing on freehold properties and neglecting the 99-year leasehold ones. But when the market picks up, prices of leasehold properties will also rise.'
Average prices of a three-bedroom unit at the 362-unit Loyang Valley are about $380,000 to $420,000, which translates to less than $300 on a psf basis, he said.
This compares with about $390,000 on average for a 1,572 sq ft to 1,625 sq ft executive HDB flat in Pasir Ris.
In fact, an executive HDB flat in Pasir Ris was sold for $440,000 in June. 'The monthly maintenance fees for large, older projects are usually around $200 to $250 on average. It is not very much more than the combined service and conservancy charges and parking fees for an executive flat,' said Mr Cheng.
Over in the Bukit Panjang area, the 636-unit Maysprings condominum in Petir Road also has units going for less than $400,000. In June, a 1,291 sq ft unit there was sold for $380,000 or about $294 psf.
It is easier to find cheaper apartments in bigger projects simply because there is more competition among the sellers.
Bargains can be found in quality projects, which are sometimes small ones. But these properties are likely to be old, in a not very convenient location or in a less desirable residential neighbourhood such as Geylang, agents said.
Bayshore Park, for one, may have some bargain apartments, said Mr Colin Tan of property consultancy Chesterton International. While it is a fairly old property with about 75 years left on its lease, it has spacious grounds and sea views from units on the higher floors, he said.
Other fairly large projects that may turn up some bargains include the 950-unit Parc Oasis at the junction of Boon Lay Way and Jurong Town Hall Road and the 645-unit Regent Heights in Bukit Batok.
Ageing 99-year leasehold apartments remain attractive to those who are keen to soak up the lifestyle of a private home but have a limited budget, agents said.
'If you get a private apartment instead of an HDB flat, you may have to compromise on amenities such as food outlets and accessibility but you gain on privacy and facilities such as swimming pools,' said Mr Cheng. 'If you don't mind the compromises, there are a lot of good buys out there. You just have to look around.'
joyceteo@sph.com.sg
