The 3 Numbers That Decide If a Resale Condo Is Worth It
Direct answer: Before you make an offer on any resale condo, check the remaining lease against your exit timeline, the MCST’s sinking fund and AGM minutes, and the gross rental yield against your mortgage cost. Get these three wrong and the psf discount stops mattering.
Once you’ve decided resale is the right path (see Part 1 of this guide), the next question is which resale condo. Price and layout are the easy part. These are the three numbers that actually determine whether a specific unit is worth buying.
Number 1: Pricing and Valuation
Resale condos are valued by licensed valuers, and your bank lends on the lower of the price or the valuation. Pay above valuation and the gap comes out of your pocket, in cash, not CPF. That's Cash Over Valuation (COV), and it's the number to negotiate hardest.
As of 2024/2025, new private condos average over $2,200 psf while resale condos average around $1,600+ psf; in prime areas, new launches exceed $3,000 psf against $1,500 to $1,700 psf for resale.
Number 2: Lease Decay
Why remaining lease matters more than almost anything else on the listing+ Read →− Collapse
For a 99-year leasehold resale condo, every year of lease left matters, not just for your own enjoyment but for your future buyer's ability to get a loan. Banks lend less against older leaseholds: a condo with 60 years left gets a lower loan-to-value than one with 75, and below 30 years financing becomes very difficult.
A rule of thumb: avoid leasehold resale condos whose lease will fall below 60 years before you're likely to sell. Work back from your own timeline. If you plan to hold 10 years and the condo has 72 years left, your buyer will be looking at 62 years. Still financeable, but starting to face lending limits.
Number 3: MCST Health
As a former Managing Agent, this is the one thing most buyers skip entirely: the MCST financial statements. Three things to check before any offer.
What to actually look for in the AGM minutes and audited accounts+ Read →− Collapse
Sinking fund balance : is it funded well enough for the big works ahead, such as lifts, waterproofing and M&E systems? A thin sinking fund means a special levy is coming, and that's an unexpected cost for you as the new owner. For a well-kept mid-sized development, above $5,000 to $8,000 per unit is generally healthy.
Deferred maintenance : known defects, seepage or ageing systems the MCST keeps putting off. These show up in AGM minutes, not the listing agent's brochure.
Managing Agent quality : the firm running the estate tells you a lot about its governance. Badly managed estates wear out faster, have more disputes between units and are harder to sell.
James’s Note: Ask for the last 3 years of AGM minutes and the latest audited accounts before making an offer, and look at the sinking fund per unit, any pending special levies and any open defect disputes. Most buyers don't do this, which is exactly why those who do find better homes.
The Yield Check: Does the Rent Service the Mortgage?
Working out whether the numbers actually carry+ Read →− Collapse
Gross rental yield is annual rent divided by the price. At today's resale prices and rents, most OCR resale condos yield 3.5% to 4.5% gross, while a home loan at current rates costs roughly 1.5% to 2.5% of the loan a year. Positive cash flow is possible, but only with the right home at the right price, which is why the first two numbers have to be right before this one means anything.
Putting the Three Numbers Together
None of these three numbers works on its own. A great psf with a lease falling below 60 years by the time you sell is a trap. A healthy lease with an empty sinking fund is a trap with a delayed bill. The unit worth buying passes all three, lease, MCST and yield, not just the one that looks good in the listing.
FAQ
What is Cash Over Valuation (COV) and why does it matter?+
COV is the gap between what you pay and the bank valuer’s assessed value. Your bank only lends against the lower of the two, so any COV comes out of your own cash, not CPF. Always check the valuation before agreeing on a purchase price, not after.
How many years of remaining lease is too low for a resale condo?+
Below 60 years remaining at your likely exit date starts to attract meaningful bank LTV haircuts, narrowing your future buyer pool. Below 30 years remaining, financing becomes extremely difficult for almost any buyer, which effectively caps your resale market.
What should I check in an MCST's financial statements?+
Request 3 years of AGM minutes and the latest audited accounts. Look at the sinking fund balance per unit, any pending special levies, and unresolved defect disputes. A healthy sinking fund is generally above $5,000 to $8,000 per unit for a mid-sized estate.
What is a healthy rental yield for a resale condo in Singapore?+
Most OCR resale condos gross 3.5 to 4.5% today, against a mortgage cost of roughly 2 to 2.5% of the loan annually. That gap is what makes positive cash flow achievable, but only if the unit is bought at the right entry price.
Can a special levy really cost tens of thousands of dollars?+
Yes. A special levy from a depleted sinking fund for major works like lift replacement or waterproofing can run $10,000 to $30,000 per unit. This is exactly the kind of cost that AGM minutes will flag well before it becomes a bill.
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Get my free Property Decision Review →Sources+ Show all 3 →− Hide
- URA Real Estate Statistics, 4Q 2025, January 2026
- PropNex Research, 2026 Singapore Property Outlook
- BMSMA (Building Maintenance and Strata Management Act) MCST financial disclosure requirements
Disclaimer & Licensing+
This article is for informational and educational purposes only. It does not constitute financial, investment, or legal advice. Property investments involve risk. Past performance is not indicative of future results. Readers should seek independent advice from licensed professionals before making any property or financial decision. James Ong is a licensed real estate salesperson (CEA Reg No. R008385F) with PropNex Realty Pte Ltd and is not a licensed financial adviser.
James Ong | CEA Reg No. R008385F | PropNex Realty Pte Ltd
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