Why most condominium comparisons are unfair
"Which of these two condos should I buy?" is one of the most common questions buyers ask — and one of the most commonly answered badly. Ask two buyers to compare two condominiums and you will usually get a conversation about price per square foot and how the showflat felt. Both are inputs. Neither is a comparison.
A fair comparison puts two projects on the same basis: the same definition of area, the same source of price data, the same treatment of tenure, the same holding-cost assumptions and the same yield calculation. Do that, and the ranking often flips. The project that looked cheaper per square foot turns out to have smaller usable area. The project with the better yield turns out to have a maintenance fee that eats half the difference. The cheaper project turns out to have twenty fewer years of lease.
The six-point comparison framework
Work through these in order. The early points normalise the comparison; the later points determine the outcome.
| # | Comparison point | Normalise by |
|---|---|---|
| 1 | Usable area | Effective floor area in sq ft, not strata area |
| 2 | Price per square foot | URA caveats, same period and tenure basis |
| 3 | Tenure and lease decay | Remaining lease in years, financing eligibility impact |
| 4 | Holding cost | Total monthly outlay: maintenance fee, property tax, loan interest |
| 5 | Net rental yield | Net of maintenance fees, property tax and vacancy |
| 6 | Unit mix and exit liquidity | Transaction volume and depth of the future buyer pool |
Rule of thumb: if two projects are within about 5 per cent on points 1–5, decide on the qualitative factors — unit mix, exit liquidity, future supply and building condition — because those determine what happens when you sell.
Freehold vs leasehold and the question of remaining lease
Usable area, not strata area
Two units can both be advertised as 900 sq ft and offer meaningfully different liveable space. Strata area includes planter boxes, air-conditioning ledges and void space in duplexes. A 900 sq ft unit with 60 sq ft of planter box and 30 sq ft of AC ledge is functionally an 810 sq ft home — and its effective psf is higher than the headline number suggests.
Price per square foot from URA caveats
Asking prices are not data. URA caveats are. Compare psf using transactions from a comparable period, filtered for the same tenure and a similar age band. Benchmark both projects against the district median psf, then ask why either deviates. A premium is justified by location, specification, views or scarcity — or it is not, and it will compress on resale.
Freehold versus 99-year leasehold
Freehold versus leasehold is the first-order question. Freehold costs more to buy and often yields less, but it is a long-horizon scarcity play. Leasehold has a lower entry price and often better early yield, but decays. The second-order question, which far more buyers get wrong, is remaining lease:
| Remaining lease | Practical effect |
|---|---|
| More than ~60 years | Full financing options generally available; broadest buyer pool |
| ~40–60 years | CPF usage typically restricted; some buyers and lenders become cautious |
| ~30–40 years | Loan tenure shortens materially; buyer pool narrows sharply |
| Under ~20 years | Largely a cash-buyer market; value driven by land and redevelopment prospects |
Holding cost and net rental yield
Total monthly holding cost
Maintenance fees are the most consistently underestimated line in any comparison. Fees are apportioned by share value, a statutory allocation that roughly reflects unit size and use of common property. Two similarly sized units in different developments can carry very different monthly charges, because the fee depends on the amenity load and the efficiency of management, not just size.
For each project, compare:
- The monthly maintenance fee for the specific unit — not a generic figure.
- The trend over the past three years, from AGM minutes.
- The maintenance fund balance relative to likely near-term works.
- Any resolved or proposed special levy.
- Property tax, based on the unit's annual value.
Net rental yield, not gross
Gross yield is a marketing number. The comparison that matters is net:
Net yield = (Annual rent − maintenance fees − property tax − vacancy allowance − letting costs) ÷ purchase price
A 3.5 per cent gross yield in a high-fee development can fall below a 3.0 per cent gross yield in a leaner one. Run both properly before you decide.
Unit mix, exit liquidity and future supply
Unit mix and who your future buyer is
A development dominated by small one-bedroom units competes with a deep pool of identical resales. A development with a healthy spread of two- and three-bedroom family units typically has a broader resale pool. Ask what proportion of the project is family-sized.
Exit liquidity: transaction volume
How many transactions happen in this project per year, and how quickly do units move? A project with 300 units and five transactions a year is a different liquidity proposition from one with 700 units and sixty transactions a year.
Future supply within about 1km
Check URA for pipeline launches and government land sale (GLS) sites within roughly one kilometre. A new launch next door is not automatically bad — it can re-rate a precinct — but it changes your resale competition. The East Coast Road (Siglap) and Serangoon North View sites launched in September 2026 are exactly this kind of factor for buyers in those areas.
Building condition and reserves
For resale condos, age matters beyond lease. Older developments face cyclical works — repainting, lift replacement, waterproofing, façade works — financed either from a healthy maintenance fund or from a painful special levy. Ask to see the maintenance fund balance and the last three years of AGM minutes. A well-run older project can be better value than a stretched new one.
Worked comparison: two units, one budget
Illustrative example
| Condo A (freehold, older) | Condo B (99-year, newer) | |
|---|---|---|
| Asking price | SGD 1,750,000 | SGD 1,550,000 |
| Effective area | 840 sq ft | 800 sq ft |
| Price psf (effective) | ~SGD 2,083 | ~SGD 1,938 |
| Monthly maintenance | SGD 420 | SGD 480 |
| Remaining lease | Freehold | 91 years |
| Typical 2-bed rent | SGD 4,800 / month | SGD 4,500 / month |
At first glance Condo B is SGD 200,000 cheaper. But the effective psf gap narrows once area is normalised, Condo B costs SGD 60 more a month to hold, and it earns SGD 300 less rent. Whether Condo A's freehold premium is worth it depends on your holding horizon. This is illustrative only — the point is the method: normalise before you compare.
Common mistakes when comparing condominiums
- Comparing asking prices instead of caveats. Asking prices contain negotiation room that caveats do not.
- Using strata area as liveable area. Planter boxes and AC ledges distort the comparison.
- Ignoring maintenance fees and special levies. Holding cost can erase an apparent discount.
- Comparing gross yields. Net is the only number that reaches your bank account.
- Overlooking remaining lease. A cheaper 99-year unit with a short lease may simply be pricing in its own decay.
- Assuming freehold always wins. Freehold costs more to buy and often yields less; it is a long-horizon scarcity play.
- Ignoring what is being built nearby. New supply changes your future competition.
Frequently Asked Questions
How do I compare two condominiums fairly in Singapore?
Normalise both to the same basis: effective usable area, URA caveat psf for a comparable period and tenure, remaining lease, total monthly holding cost and net rental yield. Only then compare unit mix, exit liquidity, future supply and building condition.
Is freehold better than leasehold in Singapore?
Freehold offers greater long-term scarcity and avoids lease decay, but usually costs more and can yield less. Leasehold typically offers a lower entry price and often better rental yield early on. The right answer depends on your holding horizon and exit plan.
How much are condominium maintenance fees in Singapore?
Fees vary widely — commonly from around SGD 300 to over SGD 700 per month for a two-bedroom unit — and are apportioned by share value. For a specific unit, check the actual fee with the managing agent and review the last three years of AGM minutes.
Which condominium has a better rental yield?
Compare net yield: annual rent less maintenance fees, property tax, vacancy allowance and letting costs, divided by purchase price. A lower-fee project may beat a higher-rent one on net terms.
How do I use URA caveat data to compare condos?
Filter URA caveats to the same period, tenure and similar age band, then benchmark both projects against the district median psf. Ask why either deviates — and whether that premium will hold on resale.
Should I buy a newer or older condominium in Singapore?
Newer units bring a fresh lease and modern specifications but often higher psf and fees; older units bring larger layouts, lower psf and known condition, but potential cyclical works and special levies. Check the maintenance fund before deciding.
Sources & external references
- URA — Property Market Information and caveats
- URA — Land Sales (Government Land Sales programme)
- CPF Board — Using CPF for property
- MAS — Property loan rules and TDSR
- IRAS — Property tax
- BCA — Building and Construction Authority
Internal links
Comparing two projects right now?
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Images and illustrations are AI-generated for illustration purposes only. This page is general information, not financial, tax or legal advice. All figures are in Singapore Dollars and are illustrative. Verify current CPF, MAS, IRAS and URA rules before acting.