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why small units psf are usually higher than bigger ones?

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bobojin
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why small units psf are usually higher than bigger ones?

Post by bobojin » Wed, 08 Jun 2022 9:47 pm

I guess some real estate agents would find a way to get small ones (usually 400-600 sq ft) in new projects and make them resale after 3 years. Probably return in percentage (in terms of capital put in, not the unit listed price) will be around 100% in three years, or over 30% per year in bull years.
Large units may be difficult as the capital required will be much higher.

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abbby
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Re: why small units psf are usually higher than bigger ones?

Post by abbby » Mon, 13 Jun 2022 1:35 pm

Large units have the opportunity to enjoy more capital appreciation since the sq ft is bigger. However more input in capital as well. I've heard of people selling within 3 years paying SSD and still making a profit (for larger units).
The secret of life is honesty and fair dealing. If you can fake that, you've got it made. - Groucho Marx (1890-1977)

Lisafuller
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Re: why small units psf are usually higher than bigger ones?

Post by Lisafuller » Sun, 19 Jun 2022 11:15 pm

bobojin wrote:
Wed, 08 Jun 2022 9:47 pm
I guess some real estate agents would find a way to get small ones (usually 400-600 sq ft) in new projects and make them resale after 3 years. Probably return in percentage (in terms of capital put in, not the unit listed price) will be around 100% in three years, or over 30% per year in bull years.
Large units may be difficult as the capital required will be much higher.
Personally I believe it has something to do with demand and supply - smaller units are typically in higher demand because they are more affordable to buyers, yet supply is low which is bound to drive price up.

Lisafuller
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Re: why small units psf are usually higher than bigger ones?

Post by Lisafuller » Sun, 19 Jun 2022 11:16 pm

abbby wrote:
Mon, 13 Jun 2022 1:35 pm
Large units have the opportunity to enjoy more capital appreciation since the sq ft is bigger. However more input in capital as well. I've heard of people selling within 3 years paying SSD and still making a profit (for larger units).
True, though I believe the ultimate reason is DDSS

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