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The era of a flat plays a bigger role over if the apartment is situated in a non-mature estate, states Huttons in its study report.
With connectivity and conveniences advancing in non-mature estates, a number of the resale level costs in non-mature estates have inched closer to people in older property, it discovered, citing the instance of a five-room apartment in Punggol that brought $910,000, in contrast with a five-room apartment in Clementi that controlled $1.095 million.
In general, resale costs for apartments in non-mature property have increased greater than those in older estates, therefore narrowing the cost gap between both forms of property, and finds the research consultancy.
The average costs of two-room apartments attracted a premium, or are greater, compared to their counterparts in older estates. This is a result of the era of the apartments — trades of those two-room apartments are on average less than a decade old, in contrast to an average age of over 35 years in older estates.
In cases like this, a decaying lease includes a “greater effect” on the purchase price of the apartment, despite being in a property that is mature, it highlights.
Meanwhile, for three-room apartments, the cost gap between older estates and non-mature property has narrowed through time.
This climbed to 81,623 three-room apartments in 2019, a rise of 19,015 apartments over eight decades. By comparison, there was an accession of 2,822 three-room apartments in older estates over precisely the exact same period, 6.7 times less compared to people at non-mature estates.
The cost gap stays stable for four-room apartments between older and non-mature estates, in which it discovered that both the typical age of transacted four-room apartments in older and non-mature estates began to decrease around precisely the exact same time.
On the flip side, the cost gap for five-room apartments in non-mature property and older property has narrowed. This is a result of the reduced supply of these apartments in older property and a greater quantity of newer five-room apartments in non-mature home, which brought down the average age of apartments from non-mature estates.
By 2011 to 2019, 5,063 five-room apartments in older estates were offered within the span. Over precisely the exact same period, 25,319 five-room apartments were inserted in non-mature estates.