Inside a column in March 2006 I noted that property speculators are pushing in the prices of recent condominium units, which might consider happen to be high when compared with older ones in Bangkok.
Today let us check out a good example of this phenomenon. There is a brand new condominium launched lately on the stretch of land next to another older building. The second is a touch over ten years old, however when it was initially built it had been considered among the couple of genuine grade A condominiums in Bangkok. It features a lovely podium level, having a tranquil swimming pool area, tennis court, almost every other facility you realized, and every unit measures a minimum of 300 square metres. Why shall we be held suggesting this? It is because the sales prices within this condominium are little more than one-1 / 2 of the sales prices in the new neighbor-to- be.
For convenience, let us state that the older condominium is selling for 55,000 baht per square meter and also the brand new one is selling for 100,000 baht per sq. m. May be the improvement in cost really justified?
You can eliminate the land cost, because the two condominiums are right alongside one another. So what exactly is the main difference?
Construction methods? Doubtful. Actually, many older condominium units are perhaps stronger compared to newer counterparts. Many developers producing lower-grade new condominiums are utilizing materials, for example plastic imitation parquet flooring, that are unlikely to last at least a year or more. Also, lower-grade materials makes it possible for sounds from neighboring units to feed.
Facilities? Away from the situation above. The older condominium includes a full-range of facilities already.
Calibre from the co-proprietors? Within this situation the brand new condominium has numerous smaller sized units, tailored for possibly a far more middle- class market compared to older building which comprises large units only.
The look of your building? This should be it. The brand new condominium have a nice, shiny new lobby, a clear and recently colored exterior, freshly laid flooring within the common areas, and new furniture. That old condominium delays for any repaint, along with a new lobby could be nice too.
Then how about we the proprietors from the older condominium make these enhancements? Most likely because with regards to purchasing a condominium, individuals are ready using their chequebooks, however for ongoing maintenance, this isn’t the situation. Or condominium committee people aren’t nearly as good at selling-within this situation the thought of an essential cosmetic upgrade to include value – as individuals employed by the developer.
Performs this imply that in five or 10 years’ time the brand new condominium may be like that old condominium? Is purchasing a condominium like purchasing a vehicle the cost depreciates with time?
Well, were you to give the older condominium pointed out over a repaint, gave it a brand new lobby with new furniture and resurfaced the rostrum level, and renovated the little bit of common space while watching units, and so the difference backward and forward wouldn’t be exceptional. I do not see many prospective buyers drilling in to the concrete structure to determine the integrity from the concrete.
Keep in mind that if you purchase one within an older condominium, there’s a strong possibility that inside there might be lots of old wooden fitted furniture that’s ten years from fashion. You might want to rip the entire lot out and begin on your own. Should you transported out an intensive renovation from the unit-new floors, new furniture, new electrical and sanitary fitting, you would then most likely be searching at spending around 10,000 baht per square metre.
So possibly the treatment depends about how much you are prepared to invest in a shiny lobby. I personally generally spend about about a minute each day walking with the lobby. The majority of time I spend within the unit. What about you?
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