A Surprising Shift in Demand

SINGAPORE - Once seen as outdated, condominiums built in the 1980s and earlier are newly attractive to buyers. In today's market, demand for these older condos—those over 40 years old—is booming, with both sales and prices on the rise.

Steady Growth Since 2018

Figures from the Urban Redevelopment Authority (URA) and Realion Research reveal a steady increase in demand for older, leasehold condos since 2018. Sales have surged dramatically, indicating a significant shift in buyer preferences.

Staggering Sales Figures

In 2018, 101 leasehold condos aged 40 and above sold for a median price of $914 per square foot (psf). Fast forward to 2024, the volume skyrocketed to 323 units sold, with prices climbing to a median of $1,109 psf. The trend continues into 2025, with at least 215 units changing hands at a median price of $1,115 psf from January to July.

Affordability and Space Drive Demand

Christine Sun, chief researcher at OrangeTee – Realion Group, suggests affordability and size are critical factors driving this demand. Older condos typically offer larger living spaces at more attractive prices compared to their newer counterparts. For instance, in 2012, condos younger than 40 years had a median resale price that was 7% higher than older ones; by 2017, this gap had ballooned to 31.7%.

A Price Advantage Amid Challenges

As of January to July 2025, median prices for newer leasehold condos under five years were a staggering $2,479 psf, 122.3% higher than the $1,115 psf for older condos. Despite aging buildings facing issues like infrastructure decay and limited funds for repairs, demand remains resilient.

A Growing Segmentation in the Market

According to ERA Singapore, there are currently 2,703 condo developments in Singapore, with 836 (about 31%) being at least 30 years old. This number could rise to 1,160 by 2035, assuming no further collective sales occur. However, selling these aging units can be tricky and may require patience to find the right buyer.

Niche Market Appeal

Property agent Ron Chong highlights that his clientele primarily consists of older buyers looking for larger, more affordable spaces as they transition from landed homes to condos. A 48-year-old unit at Lagoon View, listed at $2.1 million, is attracting interest for its spacious layout despite its age.

Investment Potential and Location Benefits

Older condos not only provide larger living areas but are also located in prime, mature estates. This location appeal, coupled with potential long-term capital appreciation, makes them attractive to investors.

Financing: A Major Hurdle

However, financing older condos presents challenges. Banks evaluate loan eligibility based on the property's remaining lease; shorter leases can lead to reduced loan amounts or outright denials. This financial barrier necessitates careful consideration by potential buyers.

Navigating the Market Landscape

As mortgage rates dip in 2025, it's crucial for buyers to view their options holistically. Maryanne Phua, head of home loans at OCBC Bank, emphasizes that lower interest rates lower monthly payments, but buyers must evaluate overall affordability and property suitability before making a commitment.