The Quiet Charm of Apartments
Firstly, the difference between condominiums and apartments is that condos have a land area of more than 4,000 square meters as defined by the URA or Urban Redevelopment Authority, and they generally have a wide range of community and recreational facilities in the project. Apartment, on the other hand, is a small scale projects with a land area of less than 1,000 square meters and relatively few or no amenities, and they are generally five stories high.
Key notes
- Shorter waiting time, higher returns.
- Less units, less competition when renting.
- Few people use facilities, it is left to yourself.
- Chance of enbloc is higher than large projects.
Firstly, if you are buying an apartment under construction, due to its smaller size, the waiting time for completion is shorter than that of a condominium, about 2 years to complete the project and collect the keys. This accelerated process also facilitates defects rectifications. Whether you are renting or selling a unit, the shorter the time frame, the quicker you can realize a return on your investment. This compares to larger condo projects with more units, which generally take a while to get the keys, and can drag on for up to six months, which means three and a half years would have passed before you can move in, or get your rental income.
At the same time, because of the limited supply of apartments, this means that the landlord has more tenants to choose from, which reduces the waiting time for renting. If selling, with fewer properties on the market and less competition from buyers, owners will face less price competition than in a large, recently completed project.
Also, most of us city dwellers are used to high density living. Staying in an apartment gives you a unique environment and tranquillity with fewer neighbors. If you’ve ever lived in such a project, maybe there are only 20-30 units, you’ll find that although the pool is not that big, very few of your neighbors will use it together, which means that it’s usually just you or your family enjoying it. It’s actually very relaxing to have a few people using a pool of that size. In contrast, larger projects have more residents, so even though there are more facilities, you won’t have a chance to use them if you don’t make a reservation in advance.
Fourth, apartment has higher en bloc development potential. Since there are fewer units, the owners will be more closely connected, the likelihood of being able to agree on and put through the en bloc is relatively higher, and the process may be simplified. In addition, the overall purchase price of an apartment project is within the means of most developers, which increases the chances of the project being acquired for redevelopment.