I’m not sure if you have the time — I live in a resale five-room HDB in Punggol since 2009 when I got married. Young and not financially savvy, we took a HDB loan and just let it run. Life’s been kind and we are more secure on the financial front.
Purchasing an HDB is often the initial choice for many home buyers and can serve as an excellent starting point for property ownership. However, when considering legacy planning, buying a property with stronger value retention potential, especially for long-term investment becomes a more attractive prospect.Performance of new 99-year leasehold condos bought 20 years ago versus resale freehold options available at that time.
With this in mind, let’s focus on the performance of new launches in D19 over the past two decades. In your decision between a new 99-year leasehold and a resale freehold, it’s crucial to examine the price trends for both from 2002 to 2022. For simplicity, we’ll round both prices to $580,000. At this price, the 99-year leasehold new launch bought then would be worth $1,270,200 while a freehold resale property would be worth $1,316,600 — a difference of $46,600.
On the other hand, you may have been introduced to Breezy Mansions — a newly TOP 999-year condo at that time. It has a similar size to Sunglade for the same price, but it’s got no facilities and it’s situated in a landed enclave which is relatively inconvenient.Breezy Mansions is a boutique development, so there are fewer transactions and the last recorded was about $1,000,000 back in 2020. It should be much higher today — perhaps $1,300,000 if we give it a 30 per cent appreciation.
This method incurs greater transaction costs but allows you to take advantage of choice units that are priced reasonably well . The transformation of the Hougang MRT station into an integrated transport hub is a pivotal aspect of this project. It’s not just about trains; it’s about creating a seamless transit experience. With the intersection of the CRL and the existing North East Line , commuters will have a convenient interchange, simplifying transfers between different modes of public transport.
So unless the decision was just based on wanting to stay in a more modern development with better facilities , then it’s hard to look past the freehold tenure given you have such a long holding period.