Freehold + CCR + good schools… still no profit?
Freehold + CCR + Good Schools… Still No Profit? 🤔
🚨 What if I told you a freehold condo in CCR, near good schools, could potentially make less money than a leasehold condo in OCR?
Look at 35 Gilstead.
The owner bought this 2-bedroom for about $1.78M in 2019.
Now, 7 years later, it’s heading to auction with a guide price of just $1.75M.
And that’s before factoring in interest, maintenance, property tax and selling costs.
Yes, the owner could have collected rent after TOP in 2024.
But even with rental income, the overall return may not be very attractive.
Now compare that with what you could have bought with roughly the same budget in 2019.
A 4-bedroom Premium at this OCR property.
Today, comparable 4-bedroom units can be around $2.5M or more.
That potentially means $700-800,000 in capital appreciation, plus rental income.
Of course, this is just one comparison. It doesn’t mean every unit in the OCR condo outperformed every CCR property.
But here’s the lesson:
Freehold doesn’t guarantee profit.
CCR doesn’t guarantee profit.
Good schools don’t guarantee profit.
What matters is your entry price, future buyer pool, and how much room there is for the next buyer to pay more.
Because ultimately…
You don’t make money just because you bought a good property.
You make money when the next buyer is willing to pay more.
Want to see which OCR condo I’m comparing this with? Comment “OCR” or DM me, and I’ll show you the numbers behind the comparison.
#SingaporeProperty #SingaporeRealEstate #PropertyInvestment #CondoInvestment
Having observed the Singapore property market for some time, I've realized that the conventional wisdom of buying freehold condos in the Core Central Region (CCR), especially near reputed schools, isn't always a guarantee of profit. The example of 35 Gilstead—a freehold 2-bedroom bought for $1.78M in 2019 and now heading to auction at $1.75M—really highlights this. One important factor that often gets overlooked is the entry price. Even if the location is prime and tenure freehold, the initial purchase price can be so high it leaves little room for capital gains. This is notably evident when comparing it to a leasehold 4-bedroom unit in the Outside Central Region (OCR), bought with a similar budget in 2019 yet appreciating another $700,000 to $800,000 today. Another aspect to consider is the size and utility of the unit. OCR properties often offer larger spaces—like 4-bedroom units—that appeal to bigger families and a wider rental market, leading to potential for greater rental returns and a broader pool of future buyers. As an investor or homebuyer, what really matters is your exit strategy. Will the next buyer be willing to pay more than you did? This depends on market trends, development plans in the area, and the overall demand-supply dynamics, not just on whether the property is freehold, located in CCR, or near good schools. Moreover, hidden costs such as maintenance fees, property tax, and interest costs significantly affect net returns. The owner at 35 Gilstead might have collected rental income after the TOP in 2024, but these costs can erode profits. In my experience, diversifying your property portfolio to include well-chosen OCR units can sometimes yield better long-term returns, particularly when market conditions favor suburban growth and modernization. While no property investment is without risk, understanding market cycles and buyer preferences is key. To sum up, don't rely solely on traditional indicators like freehold tenure or school proximity. Evaluate entry price, potential capital appreciation, rental demand, and future buyer pool carefully. It's these practical factors that will ultimately determine your profit in Singapore's dynamic property landscape.
