Why Neighborhood is a Key Factor in Choosing a Condominium
Although it takes some time and money, you can update the interior of a condo to better suit your tastes. But the one thing you can never change about your property is the location.
The neighborhood you choose will have a huge impact on your lifestyle, not to mention the resale value and rental potential of your property. That’s why it’s important to carefully consider the pros and cons of each location so you don’t have buyer’s remorse.
To help you make an informed choice, here are some key factors to consider when deciding where to live.
Price
A condo’s location has a big impact on its cost. The median price of a two-bedroom, 900-square foot condo in the core central region is 2.56 million. In the rest of the central region, the average cost of a two-bedder is 1.62 million, so you could save a significant amount of money by moving further out.
However, there’s nothing like living in the city and being right in the middle of the action. If you’re on a budget but don’t want to settle for a far-flung condo, you can offset the cost of buying in a prime location by taking advantage of developer discounts.
Early bird discounts can lower the purchase price of a new condo by as much as 20% and make it even cheaper than a resale unit. These promotions could put a condo in your ideal neighborhood within financial reach, especially considering your maintenance costs will be lower since the unit is brand new.
Resale Value
Although condos in popular neighborhoods are more expensive, they usually appreciate at a faster rate, which makes them worth the investment. For example, properties in District 2 are highly sought after and have increased in value by 58.13% over the past five years.
If the core central region is outside your budget, you can still get a good return on your investment by purchasing a condo in an up-and-coming neighborhood. Looking at the URA Master Plan can help you identify areas that are currently being developed and could have higher property values in the future.
Rental Potential
If you’re hoping to use your condo as an investment property, its location may affect your ability to rent it out. Centrally located units are always in demand, which makes them easier to lease out than condos that are far from the city.
In 2018, the private residential vacancy rate in Singapore rose to 6.8% due to an oversupply of units. But condos in the core central region didn’t experience as much of a drop in demand. So if you’re looking for a rental property that provides consistent returns even in down markets, a condo in the CCR may be a good option.
However, units in popular neighborhoods require a bigger investment of capital upfront. More expensive properties also provide slightly lower rental yields on average. So if you purchase a cheaper property that’s further out, you may be able to get higher returns. But you’ll have to make sure that the property is rented out consistently, which will likely require more marketing and effort on your part.
Lifestyle
The neighborhood you choose has a major impact on your lifestyle. Purchasing a condo that’s far away from the city will increase the length of your commute, taking up precious leisure time. You’ll also be further away from shops, restaurants, and entertainment, which may make it harder to enjoy yourself in your limited time off.
Being able to walk to your favorite coffee shops and clothing stores on a whim will vastly improve your quality of life. It’s usually worth paying more for a condo if it means having the best amenities in Singapore right outside your doorstep.
If you’re looking for a lively, active place to live, it’s worth considering the LIV at Mountbatten Price development in District 2. It has a plethora of amenities within walking distance, including ICON Village, Amara Shopping Center, and the Tanjong Pagar MRT. It’s also close to reputable schools and major expressways, so you won’t have trouble getting to other parts of the city as needed.
This exciting new development is launching soon, so make sure you get signed up for the early bird preview to enjoy direct developer discounts.