> ## Content Index > Fetch the complete content index at: https://www.mychoicehomez.com/llms.txt > Use this file to discover other available public pages before exploring further. # The 3 Numbers That Decide If a Resale Condo Is Worth It - URL: https://www.mychoicehomez.com/evaluate-resale-condo-guide/ - Published: 2026-09-09T13:34:49.000Z - Updated: 2026-09-09T13:34:49.000Z - Description: Price and layout are the easy part. Before you offer on any resale condo, check the remaining lease, the MCST's sinking fund, and the rental yield against your mortgage. - Author: James Ong - Tags: Buyer Guides Primary — Check Your Property’s Retirement, Retrenchment & Legacy ExposureProperty Resilience Check™Stop. Before you go further, check this. Most buyers compare prices, layouts and MRT distance. Very few ask whether they can comfortably **hold the property through interest rate changes, career changes, or retirement.** A free 2-minute assessment covering: - Holding pressure - Financial resilience - Retirement suitability - Potential risk areas [Start My Free Property Resilience Check →](https://wa.me/6591111173?text=Hi%20James%2C%20I%27d%20like%20to%20do%20the%20Property%20Resilience%20Check&ref=mychoicehomez.com) # 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. Part 2 of 2 — Resale vs New Launch[1\. Which Should You Buy](https://www.mychoicehomez.com/resale-vs-new-launch-2026/) 2\. The 3 Numbers That Matter 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 based on the lower of purchase price or valuation. Overpay relative to valuation and the gap comes out of your own pocket, in cash, not CPF — this is Cash Over Valuation (COV), and it is the buffer to negotiate correctly. 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–$1,700 psf for resale (William Tan Real Estate, June 2025). ## Number 2: Lease Decay Why remaining lease matters more than almost anything else on the listing+ Read →− Collapse For 99-year leasehold resale condos, every year of remaining lease matters — not just for your own enjoyment, but for your future buyer’s ability to finance the purchase. Banks apply LTV haircuts to older leasehold properties: a condo with 60 years remaining gets a lower LTV than one with 75, and below 30 years remaining, financing becomes extremely difficult. The rule of thumb: avoid leasehold resale condos where the lease will drop below 60 years before your likely exit date. Work backwards from your own timeline — if you plan to hold 10 years and the condo has 72 years remaining, your buyer in 10 years is dealing with a 62-year leasehold. Still financeable, but starting to attract LTV constraints. ## 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 adequately funded for major upcoming works (lifts, waterproofing, M&E systems)? A depleted sinking fund means a special levy is coming, and that means unexpected cost for you as the new owner. Healthy is generally above $5,000–$8,000 per unit for a well-maintained mid-sized development. **Deferred maintenance** — known defects, seepage, or ageing infrastructure the MCST has been kicking down the road. These show up in AGM minutes, not in the listing agent’s brochure. **Managing Agent quality** — the firm managing the estate tells you a lot about governance culture. Poorly managed estates deteriorate faster, suffer more inter-unit disputes, and are harder to exit. > **James’s Note:** Request the last 3 years of AGM minutes and the most recent audited accounts before making any offer — sinking fund per unit, any pending special levies, outstanding defect disputes. This is not standard practice among most buyers, which is exactly why buyers who do it find better assets. Secondary — Prefer to Talk to James Directly? Bring me the address and asking price and I’ll run the lease decay, MCST, and rental yield numbers before you commit to a viewing. No pitch, just the working. [WhatsApp James Directly →](https://wa.me/6591111173?text=Hi%20James%2C%20I%27d%20like%20a%20resale%20condo%20checked%20before%20I%20view&ref=mychoicehomez.com) ## The Yield Check: Does the Rent Service the Mortgage? Working out whether the numbers actually carry+ Read →− Collapse Calculate gross rental yield as annual rent divided by purchase price. At today’s resale prices and rental rates, most OCR resale condos yield 3.5–4.5% gross, while mortgage cost at current rates runs approximately 2–2.5% of the loan amount annually. Positive carry is achievable, but only with the right asset at the right price point — 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 in isolation. A great psf with a lease dropping below 60 years at your exit is a trap. A healthy lease with a depleted sinking fund is a trap with a delayed bill. The unit worth buying clears all three — lease, MCST, and yield — not just the one that happens to look 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–$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 3.5–4.5% today, against a mortgage cost of roughly 2–2.5% 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–$30,000 per unit. This is exactly the kind of cost that AGM minutes will flag well before it becomes a bill. Part 2 of 2 — Resale vs New Launch[1\. Which Should You Buy](https://www.mychoicehomez.com/resale-vs-new-launch-2026/) 2\. The 3 Numbers That MatterSources+ Show all 4 →− Hide - William Tan Real Estate, New Launch vs Resale Condo 5-Year Investment Returns, June 2025 - 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 Evaluating a Resale Condo — **WhatsApp James for a straight answer, no pitch.** [Ask James →](https://wa.me/6591111173?text=Hi%20James%2C%20I%20have%20a%20question%20about%20Evaluating%20a%20Resale%20Condo.&ref=mychoicehomez.com-sticky-evaluate-resale-condo-guide)✕