Your Condo Could Slowly Become A Liability
Your Condo Could Slowly Become A Liability
Most people buy property thinking:
“Can this still go up?”
But smart buyers ask a different question:
👉 “Can I still EXIT profitably later?”
And this is where many Singaporeans get trapped.
Example:
You buy a resale condo today for $1.8M.
But your neighbour bought the exact same unit years ago for $800k.
A few years later,
you want to sell at $2.2M.
But your neighbour sells at $1.9M and STILL makes a huge profit.
Guess which unit buyers will choose?
Suddenly your upside becomes limited.
This is why some condos stop moving in price.
Not because the project is bad.
But because earlier owners can always undercut later buyers.
And here’s another thing most people ignore:
Balance lease.
A 99-year property is like an ice cube.
Every year…
it slowly melts.
The shorter the remaining lease,
the harder it can become later for:
❌ buyers to afford
❌ buyers to get loans
❌ prices to keep climbing
That’s why some older properties can slowly shift from:
ASSET ➝ LIABILITY.
Especially if owners never planned their next move early.
And the biggest mistake?
Waiting for the “perfect timing.”
Every year people say:
“Wait first… maybe prices will drop.”
Then few years later:
“Wah… should’ve bought earlier.”
Truth is:
Nobody can consistently time the bottom.
What matters more is:
✔️ buying within your means
✔️ keeping emergency funds
✔️ choosing a property people will still want later
✔️ understanding your exit strategy
Because property isn’t just about buying.
It’s about whether your future buyer still sees value.
Thank you for watching, see you next time.
#SingaporeProperty #SingaporeRealEstate #propertyinvestment #propertytips #jonathankong
When investing in a condo, particularly in Singapore's unique property market, it's crucial to look beyond just potential price appreciation. I've personally observed from numerous conversations with homeowners that understanding the concept of balance lease can save you a lot of trouble down the road. A 99-year lease property doesn't retain value indefinitely—it’s like an ice cube that melts gradually, reducing appeal to prospective buyers and limiting loan approvals when the lease shortens. The tricky part is competition in resale markets. For example, if you buy a unit at $1.8 million but your neighbor purchased the same unit years ago for around $800,000, the market perception of value shifts. When you want to sell at $2.2 million, buyers might gravitate towards your neighbor's $1.9 million offer, leaving your property with limited upside. This illustrates how early buyers indirectly set a price ceiling that late buyers struggle against, impacting your eventual exit. In my experience, delaying purchase while waiting for "perfect timing" often backfires. The market is unpredictable, and many miss out on good opportunities because of hesitation. Instead, focus on buying within your means, maintaining emergency savings, and choosing properties that will still attract demand in the future. Your exit strategy should be planned early—don’t rely on timing the market bottom perfectly. Another personal insight is that properties closer to their lease-end require more scrutiny. Buyers face growing difficulties securing financing, which can negatively affect price growth. So, always evaluate not only the current price but also the remaining lease term and how it might influence your property's liquidity years down the line. Ultimately, owning a condo isn’t just about purchasing; it’s about retaining market value and ensuring future buyers see tangible worth. This mindset transforms your condo from a potential liability back into a valuable asset. Considering these points helped me make smarter property decisions and reduced financial stress, and I hope these insights do the same for anyone looking at Singapore’s real estate market.
