Why Buyers Need to Be Careful When Purchasing Older Condos in Singapore

In Singapore’s fast-paced property market, older condominiums—those built in the 1980s or 1990s—can be tempting. They often boast larger unit sizes than today’s compact apartments and come with a more attractive price tag, especially in prime locations near MRT stations or top schools. But before you jump in, let’s talk about why older condos might not be the best deal. From aging infrastructure to leasehold concerns, here’s why buyers need to approach these properties with caution.

1.  Aging Infrastructure and Costly Repairs

Older condos often suffer from aging infrastructure, and nothing lasts forever. Lifts, water pipes, and electrical systems in 30-year-old buildings can break down frequently, causing inconvenience and hefty repair costs. In some condos, lifts fail so often that residents end up climbing multiple flights of stairs with groceries or luggage.

Waterproofing issues, spalling concrete, and leaking pipes are also common, and these aren’t just nuisances—they’re expensive to fix. I’ve personally seen a case where a leak from the 7th floor travelled down to the 3rd floor, bypassing several levels, causing significant damage to furniture and units. It took weeks to trace the source, leaving owners stressed and out of pocket. Repairs can be delayed further when owners dispute the repair cost split, worsening the problem and causing further distress.

2.  Sinking Funds and Special Levies

Maintaining an older condo is costly, and many developments face financial strain due to inadequate sinking funds. Decades ago, contributions to these funds—used for major repairs like replacing lifts or repainting facades—were often set too low for today’s rising costs. When urgent work is needed, the money simply isn’t there. This leads to special levies, where owners are suddenly asked to fork out thousands, or even tens of thousands, of dollars for unexpected repairs. Disputes over these levies can delay fixes, exacerbating issues like leaks or structural damage. Before buying, always check the condo’s sinking fund balance and maintenance history to avoid being blindsided.

3.  Shorter Lease Tenure and Financing Challenges

Most Singapore condos are on 99-year leases, and older ones may have only 50-60 years remaining. A shorter lease reduces resale value, as future buyers hesitate to invest in a property with a ticking clock. Banks are also cautious, offering lower loan-to-value (LTV) ratios—sometimes as low as 50-55% compared to 75% for newer properties—requiring a larger downpayment. Additionally, Central Provident Fund (CPF) usage may be restricted, forcing buyers to rely more on cash. Freehold older condos avoid lease issues but are rarer and more expensive. These factors make older leasehold condos less attractive unless priced competitively.

4.  Outdated Designs Waste Space and Hurt value

Older condos often feature large units, but their layouts can be inefficient, resulting in wasted space and higher costs. For example, a 1300 sq ft condo might include 200 sq ft of underutilized areas like oversized balconies, bay windows, or aircon ledges, which add little functional value. Buyers end up paying for space they can’t effectively use, inflating the true cost per usable square foot. Modernizing these units—to utilize huge balconies or reconfiguring rooms—requires costly renovations, which can run into tens of thousands of dollars. Moreover, these outdated designs deter potential buyers when selling, as modern preferences lean toward efficient, flexible layouts. This can significantly reduce resale value, making large older condos less attractive despite their size.

5.  Lifestyle and Value Concerns

Modern buyers prioritize a lifestyle enriched with contemporary amenities and stringent safety standards, but older condos often fall short. Unlike new developments boasting infinity pools, smart home systems, co-working spaces, and wellness facilities like yoga studios or pet-friendly zones, older condos typically offer basic pools, dated gyms, or minimal communal areas. These shortcomings make older condos less appealing to younger demographics and professionals who value convenience, technology, and a premium living experience, reducing their overall desirability.

Why Older Condos Can Still Be Appealing

Despite these risks, older condos have their advantages. Their larger units and prime locations near amenities make them appealing for buyers or investors on a budget. With thorough research, you might find a hidden gem at a competitive price.

What to Check Before Buying

If you’re considering an older condo, due diligence is critical. Here’s a checklist to guide you: 

• Sinking Fund Balance: How much is in the fund, and is it enough for future repairs? 

• Maintenance History: When were the lifts, pipes, and facade last upgraded? 

• Potential Levies: Are there any upcoming needs to top up the sinking fund? 

• Resale Demand: How strong is the market demand for units in this development?

The Bottom Line

Buying an older condo in Singapore can seem like a steal, but it comes with significant risks. Aging infrastructure, inadequate sinking funds, lease and financing challenges, outdated designs, and lifestyle concerns all require careful scrutiny. Before committing, review the MCST’s financials, inspect the property thoroughly, check loan eligibility, and assess resale potential. By being cautious and informed, you can avoid costly surprises and make a sound property purchase.