Singaporean asks, ‘Why do SG people buy condos even when it ‘puts them in debt and feels like dying if they lose their job?’

SINGAPORE: Seemingly perplexed by the hype surrounding condos, a man took to social media to ask, “Why do so many people desire to get a condo?”

“No one cares about the prestige, tbh,” the man wrote on r/singaporefi on Tuesday (Jan 6).

The man explained that he did not understand why so many people wanted one because they had to pay maintenance/MCST. Additionally, he said that buying one would almost certainly “put them in so much debt that they would feel like dying if they lost their job”.

“4 room HDB in Central Area with long lease at most 1mil (Telok Blangah/Queenstown/Redhill). 3 room condo in the same areas even those 10 year old is approaching 2mil. Pass down to kids as asset also probably HDB lease outlive them,” the man added.

‘Two words: Capital Appreciation’

Numerous Singaporean Redditors responded in the comments section, each enlightening the man as to why they would choose condos.

One Redditor said, “Two words: Capital appreciation. Last year’s property gains: HDB: ~4.8% OCR Condos: ~13.8%. 4-room HDBs on average cost about $600k, which means only gain $28.8k. However, average OCR 3-bedder condos cost about $1.6M, which translate to a $220,800 gain.”

Another Redditor also chimed in and said, “That is only part of the reason, not all condos appreciate in value and you actually get into significant debt when buying a condo. There are many other reasons why people want to stay in condos, the “prestige”, amenities, privacy etc.”

Yet another Redditor said he bought his condo solely because of its proximity to the MRT, mall, and food courts. As a bonus, he also described his condo as having a nice set of amenities, such as a pool, tennis court, and gym.

“If u don’t need facilities then less reason 2 buy condo. Hdb or condo, location location location is most important,”  the Redditor added.

Other Redditors also stated that while an individual would have to pay the maintenance/MCST, it would totally be worth it since they would get something that has value in return, such as the facilities, security, greenery, nicer facades, and finishes in the common areas.

As for the prestige “that no one cared about,” Redditors responded that prestige was only part of the reason, and for many, it was mostly about the upgraded lifestyle, better-behaved neighbours, lower population density, and investment.

While many sang praises about condos, one user pointed out that there was a downside to living in these buildings.

He said, “Nah, I’ve lived in condos my entire life up till I got married. My parents have an extra condo unit but I deliberately chose a resale hdb.

I hate that in a condo you barely know your neighbours and always envy as a kid how my friends hang out at void decks and have fun with neighbours. I want my future kids to enjoy a more communal lifestyle and I enjoy the bigger space too.”

Regardless of the reason, it’s becoming clear that there’s a growing demand for condos.

Thankfully, Singaporeans will have more options this year with the recently launched condominiums, such as The Arcady, Hillhaven, Lumina Grand EC, and more.

Also, three more condominiums are set to launch in the upcoming months, namely The Hill, Lentoria, and SORA.

Read related: Spoiled for choice: 9 exciting condo launches in Singapore!