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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why small units psf are usually higher than bigger ones?
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Re: why small units psf are usually higher than bigger ones?
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).
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Re: why small units psf are usually higher than bigger ones?
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.bobojin wrote: ↑Wed, 08 Jun 2022 9:47 pmI 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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Re: why small units psf are usually higher than bigger ones?
True, though I believe the ultimate reason is DDSS
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