TL;DR

• Freehold status alone doesn’t guarantee profit, leasehold properties in the right location regularly outperform freehold ones nearby
• Location matters, but it’s not the only factor, a great address with a poorly performing property still loses money
• Amenities and eateries nearby are a bonus, not a core driver of resale value
• Layout quality affects both daily living and long-term resale appeal more than most buyers realise
• Developer reputation shapes how well a project ages and how much buyers are willing to pay over time
• Developments with fewer than 150 units often carry weaker facilities and higher per-owner maintenance costs
• Buyer’s profile, who can actually afford and want your property later, is the single most important factor of all
• A real Singapore case study shows a leasehold condo outperforming a freehold one by a wide margin over 10 years

Real estate can genuinely build serious wealth, but only if you buy the right property. Buy the wrong one, and instead of an asset, you’re stuck with a financial burden that quietly drains money every month while barely moving in value. Learning how to avoid unprofitable properties really comes down to knowing which factors actually matter, and which ones just feel like they should.

EdgeProp recently published an analysis of four Geylang freehold condos that have actually lost money over time, a genuinely useful reminder that “freehold” and “good investment” aren’t the same thing. At SG Luxury Condo, this is exactly the gap our Property P.L.U.S System is built to close, so let’s walk through what actually separates a profitable property from an unprofitable one.

The Real Case Study: Sims Urban Oasis vs #1 Loft

Sims Urban Oasis Price Trend

#1 Loft Price Trend

This comparison is genuinely one of the clearest illustrations of why avoiding unprofitable properties requires looking past the obvious factors. Sims Urban Oasis, a 99-year leasehold condo on Sims Drive, and #1 Loft, a freehold condo at Geylang Lorong 24, sit in the same district, District 14, and both are near an MRT station.

Despite #1 Loft holding freehold tenure, being closer to the MRT, and sitting near more amenities, it made zero growth over ten years, while the leasehold Sims Urban Oasis grew 38% over the same period. If tenure, MRT distance, or nearby amenities were truly the deciding factors, #1 Loft should have won comfortably. It didn’t.

Myth 1: Freehold Always Beats Leasehold

Many buyers assume freehold properties are automatically the better investment. That isn’t necessarily true. The real value lies in the specific details, the property’s actual demand, its developer, its layout, and its buyer profile, not simply whether the tenure says “freehold” or “99-year leasehold.”

At SG Luxury Condo, tenure isn’t even a top factor we screen for when identifying genuinely profitable properties. Developer reputation, location fundamentals, unit count, layout quality, and buyer profile all carry more weight. For a deeper look at how tenure actually plays out across real transactions, our comparison of freehold versus leasehold properties and our breakdown of undervalued versus profitable properties both go further into this.

Myth 2: Location Alone Determines Profit

“Location, location, location” is true to a point, but it’s not the whole story. Both properties in our case study sit in the same district, near the same MRT line, yet one delivered a real return and the other delivered nothing.

Location attracts demand, but other elements, the property’s condition, future development plans in the area, rental yields, market timing, and even ongoing management costs, all shape long-term performance just as much. Overpaying for a poorly performing property in a great location can be just as risky as buying in a less popular neighbourhood at a fair price.

Myth 3: More Amenities Means More Profit

#1 Loft actually has more surrounding amenities than Sims Urban Oasis, more eateries nearby, and a shorter walk to the MRT, yet it still delivered 0% growth. Amenities are genuinely a bonus, not the core driver of value.

What’s worth weighing instead is the fuller picture: not just eateries and convenience stores nearby, but internal facilities too, pool size, gym quality, playground space, and how well those facilities are actually maintained. Amenities are good to have. They’re not, on their own, what determines whether a property is profitable.

Layout: The Factor Most Buyers Underrate

Many buyers focus heavily on location, price, and size, while overlooking layout almost entirely. But how a home’s rooms flow and connect can affect daily life, and eventual resale value, more than almost any other single feature.

• Everyday functionality matters. A poorly designed layout, kitchen far from the dining area, awkwardly placed bathrooms, makes daily routines genuinely frustrating, no matter how nice the finishes look.
• Layout determines how space actually feels. A smaller unit with a smart, open layout can feel more spacious than a larger one chopped into disconnected rooms. Natural light, sightlines, and flow between rooms all shape that feeling.
• A good layout stays flexible for the future. A ground-floor bedroom, or an open-plan space that can be reconfigured, adapts to changing family needs without forcing a move.
• Layout drives resale appeal. Homes with poor layouts tend to linger on the market longer and sell for less than similarly sized properties with better design.
• Renovations can only fix so much. Cosmetic updates are easy. Reworking a genuinely bad layout, moving walls, adding bathrooms, often requires permits, structural engineers, and significant cost.

Since the pandemic, buyer preferences have shifted noticeably too, more demand for study rooms, bigger living rooms, master bedrooms that fit a king-sized bed, and enclosed kitchens. Developers responsive to these shifts tend to produce layouts that age better and hold buyer interest longer.

Developer Reputation Shapes Long-Term Value

Reputable, established developers tend to stay closer to what buyers actually want, often more responsive to shifting preferences than smaller or newer developers. This directly affects how a project’s layouts evolve, how well-built it is, and how buyers perceive it years down the line. A strong developer track record is one of the clearer signals worth checking before committing to any purchase, new launch or resale.

Why Unit Count Matters More Than People Think

A development’s total unit count is a genuinely underrated factor in avoiding unprofitable properties. Generally, developments with at least 150 units, and ideally more, tend to perform better for two structural reasons.

More facilities. A larger development sits on more land, and Singapore’s planning rules generally cap building footprint at around 40% of the land, with the remainder reserved for facilities. Some developments even push this further, with a land use ratio closer to 20-80 in favour of open and facility space. More land for facilities generally means a more attractive, better-equipped development.

Lower maintenance fees. With more owners sharing the cost of upkeep, individual maintenance fees, and the required sinking fund, tend to run lower. Small developments, while offering more privacy, often carry noticeably higher per-unit sinking fund contributions, which can turn off resale buyers down the line.

Buyer’s Profile: The Single Most Important Factor

If there’s one factor that ties everything else together, it’s this: before buying any property, ask yourself honestly who your eventual buyer will actually be. Can they afford it? Will they see genuine value in it? Will they actually make money if they buy it from you?

A property with a broad, realistic buyer profile sees stronger demand, and demand is what ultimately drives price, rental speed, and resale speed. A beautiful, well-priced property in a location nobody wants still won’t sell well, because without demand, none of the other factors matter. Properties with a strong buyer profile tend to see lower vacancy rates, better rental yields, and steadier price appreciation, while properties with a narrow or shrinking buyer pool can become a genuine liability, sitting empty and eating into your returns regardless of how nice they look on paper.

A Quick Checklist to Avoid Unprofitable Properties

• Don’t assume freehold tenure alone guarantees a better return, check the actual performance data for comparable projects nearby
• Weigh location against the property’s actual condition, future area development, and management quality, not the address alone
• Treat amenities as a bonus, not a deciding factor
• Study the floor plan closely, a poor layout limits both your daily comfort and future resale appeal
• Check the developer’s track record on past projects before committing, especially for new launches
• Favour developments with 150 or more units where possible, for better facilities and lower long-term maintenance costs
• Above all, ask honestly who your future buyer will be, and whether they’ll genuinely see value in what you’re buying

A Word From SG Luxury Condo

Avoiding unprofitable properties in Singapore really comes down to research, a clear strategy, and disciplined decision-making, not falling in love with a property’s appearance or its address alone. Investors who dig into demand, layout, long-term costs, and genuine growth potential, rather than chasing tenure or nearby cafes, consistently make smarter, better-informed purchases.

If you’d like a second opinion on whether a specific property genuinely fits a profitable profile, SG Luxury Condo is happy to walk through it with you. Our property consultation sessions cover exactly this kind of due diligence, and our Property P.L.U.S System is built specifically to screen for the factors that genuinely matter. You’re also welcome to browse our full range of luxury condos for sale in Singapore once you know what to look for.