As you embark on the journey of purchasing a condo, it is crucial to take into account the upkeep and management of the property. Condos typically have maintenance fees included, which cover the maintenance and care of shared areas and facilities. Although these fees may increase the overall cost of ownership, they play a vital role in preserving the value of the property. Engaging a property management company can also be beneficial for investors, as they can handle the day-to-day management of the condo, allowing for a more passive investment.
Despite a decrease in caveated transactions, the shophouse market in Singapore continues to attract strong interest in 3Q2024, according to Huttons Asia’s latest quarterly report on the market released on Nov 12. While there were only 18 caveats lodged for shophouse deals in 3Q2024, lower than the 21 recorded in 2Q2024, the total transacted quantum still amounted to $138.9 million, a decrease of 28.8% from the previous quarter’s $195.1 million. Comparing y-o-y, the transacted quantum for 3Q2024 was only half of what was recorded in 3Q2023, which amounted to $278.6 million. Data from the first nine months of 2024 shows that there were 62 shophouses sold, a significant 46.1% decrease from the same period in 2023. The total value of transactions for the first three quarters in 2024 also fell by 48.5% to $519 million. But while the numbers show a decline, Huttons’ report reveals that there were a number of shophouse deals in 3Q2024 that were not caveated. According to Senior Director of Data Analytics at Huttons Asia, Lee Sze Teck, market sources have reported the sale of several shophouses along Amoy Street, Neil Road and Telok Ayer Street in Districts 1 and 2. These deals, estimated to exceed $70 million, demonstrate the demand for shophouses in the past few months. Lee notes that investors are attracted to this market segment due to its rarity and potential for strong capital gains. With recent interest rate cuts, shophouses have become more popular as a means for wealth creation and preservation. He believes that both the volume and quantum of shophouse transactions will increase in 4Q2024.