When to Consider Rebuilding a Landed Property
My previous article on Guide to Rebuilding Landed Properties for Private Home Owners has provided homeowners a good perspective on the overall process on how to proceed with rebuilding a landed property after the real estate transaction process.
However, when are you required to do a rebuild of the landed property?
This article seeks to address this question from both a real estate and construction perspective.
Building the Home of Your Dreams
Nobody knows the ideal home that you want and it is up to you to make it into a reality. The main challenge in Singapore is that land price in Singapore is getting more expensive over the years, and there might be a lesser emphasis placed on the design aspects over the potential of a capital appreciating property.
The best option is to pay a good price on the property for its land. However, such deals are rare and it might be difficult to one without other offers by real estate developers. These developers have higher spending power as they usually have in-house contractors which can have a lower rebuilding cost.
Instead, prioritize finding a reliable contractor for your rebuilding project first. The reason being is that you will be able to work backward on your total budget. By setting aside the monies required for your rebuilding project, you are able to start searching for the land which fulfills this requirement.
In addition, builders are often in contact with real estate professionals too and might have first-hand knowledge of suitable land for your project.
Prices for a ground-up rebuild will cost around $240-$300 PSF/CFA (Cross Floor Area). I have worked with previous rebuilders who are able to complete the job for you. Contact me for more information.
The Home Was TOP Over 20 Years Ago
Homes that are more than 20 years old typically require a rebuild. Besides the numerous renovation projects required to upkeep the property, the aging façade might make the property less attractive to homeowners who are interested in purchasing a property that is ready for moving in.
From a buyer’s perspective, they will release an offer that might be lower than other neighboring properties for sale. The reality is that if the incoming owner does not intend to rebuild the landed property entirely, a property that had been recently rebuilt 10 years ago might be overall cheaper than a property that TOP-ed over 20 years ago.
These older properties will therefore tend to require a rebuild, and your expectations on price will have to be aligned accordingly. The average rebuild for terrace and semi-detached properties will cost upwards of $1 - $1.5 million. This provides a good estimate on pricing your homes by deducting this value off recently rebuilt ones in the area with similar characteristics.
Numerous Rectification Works Required
Have you done numerous renovations works and the problem still does not go away? In that case, it might be ideal to consider Addition & Alteration (A&A) or reconstruction works.
Structural components within the house might have been compromised, and simple renovation work will not be adequate.
Most renovation works are for simply rectification of minor defects, and might only be delaying the inevitable need for a complete rebuild.
Are you staying in a conserved, residential shophouse? If not, your home is qualified to do a complete rebuild. Conserved Shophouses are protected so as to preserve the yesteryears of Singapore’s local architecture marvels.
Furthermore, these shophouses are in little supply that it makes for a great investment for property seekers.
Purchasing Ready Built Properties
This is an option if you rather miss out on the fun of managing your own rebuilding projects. There are ready-built landed properties in the market, which is suitable for immediate occupation.
With all companies, the property developer that is in charge of your project will often price a premium so as to be profitable.
In my opinion, this premium shouldn’t be looked upon with disdain. What you are exchanging this premium with is the opportunity to move into it immediately. You don’t have to deal with the rebuilding period, which takes about 12-15 months.
Purchasing a ready-built property will protect you against any unfair business practices that come with the construction project. This avoids the trouble of any legal liabilities/claims.
The dream of rebuilding your landed property, down to every specific detail feels like an impossible dream in Singapore, where land prices are sky-high. It is not unusual for Singaporeans to seek countries like Australia/ New Zealand where land prices and construction costs are at a more affordable rate.
Our operations are in Singapore and Estate Magnates aims to provide you with local real estate knowledge so that you are able to conduct your property transactions and further actions with ease.
As an added service, we are able to source for you the best deals in the open market for all your property transaction needs. Our curated selection follows the same criteria as detailed in our Guide to Rebuilding Landed Properties for Private Home Owners.
After the real estate transaction, our trusted construction partners are able to provide you a competitive price for your renovation, A&A, and rebuilding projects. Either contact them with “Estate Magnates” as a referral or contact me if you will like to find out more information!
Need further help deciding which are the best investment properties for you? Contact me (Joshua) at +65 96329840 or send your queries to email@example.com! My consultations do not have a charge, and it is a service outreach! I will not be pushing any products. Let us discuss the steps that you can take to achieve your property investment goals.
The views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author’s employer, organization, committee, or other group or individual. The author does not accept any responsibility whatsoever for any harm or loss arising from accessing or relying on information contained in this blog post.