More older condos resold as buyers seek space and value

SINGAPORE – A condominium built in the 1980s or earlier might once have been deemed past its prime. But in today’s market, older condominiums – those at least 40 years old – are seeing a rise in demand, with sales and prices climbing.

Data from the Urban Redevelopment Authority (URA) and Realion Research showed that demand for older, leasehold condominiums has been rising steadily since 2018, with such units resold at higher prices.

In 2018, there were 101 leasehold condos 40 years old and above that were resold at a median per sq ft (psf) price of $914.

The resale volume more than tripled in 2024 when 323 such units changed hands, at a median psf price of $1,109. From January to July 2025, at least 215 such units were resold at a median psf price of $1,115.

Prior to 2018, the resale volume of such ageing condominiums was low, with 81 units resold in 2010 and just 13 units in 2014.

Ms Christine Sun, chief researcher and strategist at OrangeTee – Realion Group, said older condominiums tend to be more affordable and offer larger living spaces than newer ones, which could have contributed to the rise in demand.

She noted that in 2012, the median resale psf price of condos under 40 years old was 7 per cent higher than those at least 40 years old. This price gap grew to 31.7 per cent in 2017.

“Hence, older condos became a more affordable option to those looking for budget-friendly alternatives and willing to accept a lower balance lease,” said Ms Sun.

The latest data from URA and Realion Research showed that from January to July 2025, the median price of newer, leasehold condos less than five years old was $2,479 psf, 122.3 per cent higher than the median price of older condos at least 40 years old at $1,115 psf.

The rise in demand for ageing condominiums comes even as more private apartments are

getting older and struggling with deteriorating infrastructure

and insufficient sinking funds for major repairs. The Government had said it is

reviewing the Building Maintenance and Strata Management Act

to better enable management corporation strata titles to upgrade their developments.

Real estate agency ERA Singapore estimated that there are 2,703 condo developments in Singapore today, covering both leasehold and freehold projects. Of these, 836, or 31 per cent, are at least 30 years old. This number is expected to rise to 1,160 by 2035, assuming none is sold en bloc.

Despite the rise in demand, selling ageing condominiums is not without its challenges, and it tends to take longer to find the right buyer, said property agents.

Mr Ron Chong, a property agent at Huttons Asia who is currently marketing a 1,646 sq ft three-bedroom unit at Lagoon View in Marine Parade, said ageing condos are a niche segment. Most potential buyers are retired and in their 60s and 70s, he added.

The owner of the 48-year-old leasehold unit, with a remaining lease of 51 years, is asking for $2.1 million, or $1,276 psf, said Mr Chong, who started marketing the unit in December 2024.

URA data showed that in the first half of 2025, four same-size units in the same development transacted at between $1.7 million and $1.97 million, or at a median price of $1,087 psf, up from $767 psf in 2015.

Mr Chong added that potential buyers he met are drawn to the larger layouts. For example, one couple in their 60s, who had sold their landed home, viewed Lagoon View because they wanted a sizeable apartment to retire in comfortably.

“Newer condos are smaller and come at higher prices. Older developments offer the space they want and they can still set aside the proceeds from their landed sale for retirement, instead of taking a new mortgage,” said Mr Chong.

ERA property agent Vera Wong also said buyers of ageing properties tend to value the spacious layout, despite the trade-off of a lower remaining lease.

Ms Sun noted that URA and Realion Research data also reflected a shift in preference towards bigger units.

She explained that larger apartments naturally come with higher overall prices, so when more of these units are transacted, the median resale price rises accordingly.

Ms Wong, who is currently marketing a three-bedroom, 1,614 sq ft unit at Lakeview Estate in Upper Thomson Road, said another key appeal of older developments is their locations, which tend to be in prime and mature estates.

Some investors could also see the long-term capital upside of older developments with a large land plot, a feature for them to be potentially sold en bloc, said Ms Wong.

Property agents note that financing remains a key consideration for buyers of older condos.

Banks typically assess eligibility based on the property’s remaining lease. The shorter the lease, the harder it is to get a loan. While buyers of newer properties can typically borrow up to 75 per cent of the price, this percentage is reduced for older condos with fewer years left.

If the remaining lease falls below 30 to 35 years, banks may decline financing altogether. 

Meanwhile, mortgage rates have eased further in 2025, with fixed-rate packages for private properties falling into the 1.7 per cent to 2.4 per cent range. However, buyers should take a holistic view.

Ms Maryanne Phua, head of home loans at OCBC Bank, noted that while lower interest rates reduce the monthly instalments, buyers also consider other factors such as affordability, location, size and layout of the property.

“As a home loan is a long-term commitment, we advise our customers to contact the bank to assess their affordability before making a purchase,” she said.