Is the condo worth the asking price?

“Jerry, I like this condo. The seller wants S$1.8 million. Is it worth buying?” The asking price alone cannot answer that. A beautifully renovated home can still be expensive relative to alternatives; a higher PSF can still be justified. Assess entry price, suitability, affordability, future competition and resale exit before deciding BUY, NEGOTIATE or WALK AWAY.

Asking price is not market value

Consider hypothetical listings: Condo A S$1.8m for 1,000 sqft (S$1,800 psf); Condo B S$1.75m for 950 sqft (about S$1,842 psf); Condo C S$1.88m for 1,100 sqft (about S$1,709 psf). Condo C has the lowest PSF but may have a less efficient layout or location. PSF measures price, not overall value. All figures are hypothetical.

Start with completed transactions

Start with completed transactions, not only the highest sale or current asking prices. Compare similar sizes, bedrooms, floor levels, facing, layout, tenure, age, condition, nearby alternatives and transaction dates. URA private residential property data is a useful starting point, but records may not show each home's condition. Comparable sales require interpretation.

When the asking price exceeds recent sales

Suppose comparable completed sales were S$1.65m, S$1.69m and S$1.72m, while the seller asks S$1.8m. The asking price is S$80,000 above the highest example. That premium might reflect superior floor, facing or condition, but ask exactly what justifies it. These are hypothetical numbers, not actual transactions.

The renovation trap

“The seller spent S$150,000 renovating.” That doesn't automatically add S$150,000 to market value. Compare a hypothetical S$1.65m original-condition home with a renovated S$1.8m home. Does the renovation save you money and suit your needs? Are the fittings old, or the layout unsuitable? Buy the usefulness of the renovation, not the seller's spending history.

Higher PSF is not automatically overpriced

Two hypothetical S$1.8m condos: A has 900 sqft (S$2,000 psf), a newer building and convenient MRT access; B has 1,050 sqft (about S$1,714 psf), is older and farther away. One offers convenience, the other space. Neither is automatically the better purchase or investment. Assess what matters to your household and future buyers.

Can you comfortably afford it?

For a hypothetical S$1.8m purchase with a 75% bank loan, the loan is S$1.35m and downpayment S$450,000. Over 30 years at an illustrative 3% annual rate, monthly repayment is about S$5,691; at 4%, about S$6,445, roughly S$754 more. Residential Buyer's Stamp Duty is S$59,600 at the applicable tiered rates for this example, excluding any ABSD. Financing eligibility, cash downpayment, CPF use and loan tenure depend on the buyer and prevailing rules. These examples are not a loan offer.

Costs beyond the purchase price

Beyond the purchase price, budget for applicable stamp duties, legal and mortgage costs, maintenance fees, property tax, insurance, repairs and renovation. Investors should also account for vacancy, management and rental-income tax where applicable. The cheapest home to buy is not necessarily the cheapest to own.

Who is the future buyer?

Before buying, ask: “Who is likely to buy this property when I sell?” An unusual layout or expensive view may suit you but attract a narrower future buyer pool. That is not a reason to reject every distinctive home; it is a reason to understand how your chosen features may affect resale demand.

Future competition and your exit

Future buyers may compare your resale unit with newer projects, more efficient layouts or nearby homes at similar budgets. Review surrounding supply, planned completions and relevant URA planning information. Competition does not guarantee depreciation, but it may influence achievable price and time to sell. Consider the exit before the entry.

What if you sell early?

Life can change sooner than your planned holding period. If a hypothetical S$1.8m purchase later sells for S$1.7m, the gross price difference is S$100,000 before fees, financing and other costs. Net cash proceeds and investment profit are different measures. Seller's Stamp Duty may apply depending on acquisition date, holding period and exemptions. Test whether you can hold through a weaker scenario.

New launch versus resale

New launches can offer newer layouts and progressive payment for eligible uncompleted projects, but can involve higher entry PSF and waiting time. Resale homes can be inspected immediately and have transaction history, but may have older fittings or maintenance issues. Compare total quantum, usable space, financing schedule, holding costs, location and future competition. Neither category wins automatically.

Five pillars of condo price assessment

Five pillars: (1) ENTRY PRICE — relevant completed transactions and alternatives; (2) SUITABILITY — layout, location and condition; (3) AFFORDABILITY — mortgage and holding power; (4) FUTURE COMPETITION — likely alternatives for your next buyer; (5) EXIT — who buys next and what happens if you must sell early. BUY when the price and finances are defensible; NEGOTIATE when the premium needs justification; WALK AWAY when the risks or price don't fit.

Should you offer below asking?

Offering below asking can make sense, but base the amount on comparable sales, condition, alternatives and your comfortable ceiling. An arbitrary 10% discount may not be persuasive. Your maximum bank-approved borrowing and maximum sensible offer are not the same.

What if you love the property?

Lifestyle matters. A home is not only an investment. You may knowingly pay a reasonable premium for a location or layout that suits your family, provided you separate market-supported value from personal preference and can afford an unfavourable resale outcome. Love the home without letting emotion set the entire budget.

Next step: BUY, NEGOTIATE or WALK AWAY

Before committing to an Option to Purchase, consider a Condo Price & Suitability Review. WhatsApp Jerry “CHECK MY SHORTLISTED UNIT” with the development, asking price, area and intended holding period. We can examine completed sales, alternatives, financing, future competition and whether to BUY, NEGOTIATE or WALK AWAY. No obligation to transact. Jerry Low 劉權義 | Property Wealth Planning | Huttons Asia Pte Ltd. Visit jerrylow.sg. Related articles: https://jerrylow.sg/articles/property-not-selling-price-presentation-buyer-pool-2026/ and https://jerrylow.sg/articles/sell-condo-now-or-hold-three-years-2026/. DISCLAIMER (3 November 2026): Educational information only, not a valuation, mortgage approval or personalised financial, legal or tax advice. All examples are hypothetical. Confirm current official rules and actual transactions.

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