When purchasing a property, a key consideration is where the property is located. In this case, whether it’s in a mature or non-mature estate. In most instances, the amenities available at mature estates often draw homebuyers to the area. However, there is much more to mature and non-mature estates then just the availability of amenities. Here we take a look at some key differences between these two types of estates and what they mean for you as a homebuyer.
- Cost of Property
Money, money, money – this is perhaps the largest and most important factor when distinguishing the two types of estates, or at least the factor that is most likely to have a huge impact on the decision of homebuyers.
As expected, the price of properties located in mature estates (think Ang Mo Kio, Bukit Merah, Marine Parade, Toa Payoh etc.) are generally much higher than those located in non-mature estates (think Choa Chu Kang, Punggol, Sembawang, Woodlands etc.). We are not just talking about a marginal difference, we are talking about a difference of at least 10%, considering all other factors constant.
Just take a look at the BTO prices for the newly launched projects at mature and non-mature estates and you will get a fairly good idea of how the prices differ. With resale flats and even private property, the price difference is likely to get bigger rather than smaller.
So are you willing to fork out the extra sum for the greater number of amenities available in these mature estates?
- Age of Property
Mature estates usually have much older properties. After all, they are called mature estates for a reason. It is not easy to find freehold property in Singapore so this means that there is unlikely to be much left on the lease of resale and private properties in mature estates. With lesser time on the lease, it may also mean that it is harder to sell the property off and thus, a lower price that the property can fetch. This is not always the case though, as we see many Singaporeans still willing to pay huge amounts for their ideal flat in such mature estates, despite the less than ideal number of years left on the lease.
- Future Plans
Singapore is constantly developing its land, and what this means for non-mature estates is that, you can be almost sure that there will more and more amenities around you as time passes. As such, it is only a matter of time before non-mature estates get to enjoy the amenities that are available at mature estates. In fact these non-mature estates may even get better and improved amenities. Furthermore, with MRT lines constantly being built and an extensive plan for it too, non-mature estates are promised increased accessibility to various parts of Singapore.
Not sure whether to purchase a property in a mature or non-mature estate? Contact us and we will be more than willing to assist you.