Page 1 of 1
why small units psf are usually higher than bigger ones?
Posted: Wed, 08 Jun 2022 9:47 pm
by bobojin
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.
Re: why small units psf are usually higher than bigger ones?
Posted: Mon, 13 Jun 2022 1:35 pm
by abbby
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).
Re: why small units psf are usually higher than bigger ones?
Posted: Sun, 19 Jun 2022 11:15 pm
by Lisafuller
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.
Re: why small units psf are usually higher than bigger ones?
Posted: Sun, 19 Jun 2022 11:16 pm
by Lisafuller
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