PROPERTY DECISIONS · 5 min read
Is this condo’s asking price justified?
Check comparable transactions, the unit’s differences and your own ceiling before making an offer.
Pay a premium only when comparable transactions and benefits you will actually use justify it. Negotiate when the seller’s price rests on better units or optimistic listings. Walk away when the deal needs future appreciation to fit your budget.
You like the condo. The seller says another unit achieved a higher price. The agent says the bank’s valuation can support the asking price. Neither statement, on its own, tells you whether this particular home is a sensible purchase for you.
A useful price check has three parts: what similar homes have transacted for, what makes this unit different, and the most you can comfortably commit. Keep those answers separate until you make the offer.
Start with transactions you can explain
Ask for the records behind the comparison. For each one, note the development, transaction date, sale type, floor area, floor range and tenure. Start with similar resale units in the same project. Then look at nearby alternatives a buyer with your budget could reasonably choose.
URA’s transaction service is a useful starting point. Its caveat records relate to agreements to buy property; they are not evidence that every conveyance has already completed. Caveat lodgement is voluntary, so an absence of records is not proof that no sale occurred. The agreed price also excludes transaction costs. URA explains its coverage and methodology.
Do not put a developer sale, an older resale and an asking price into one average without explaining the differences. An advertisement shows what a seller hopes to receive. A recorded transaction shows an agreed price for another property, at another point in time.
“Which recent transactions are closest to this unit, and what explains the difference between those prices and the seller’s asking price?” A useful answer identifies the units and the differences.
Check what the premium actually buys
A higher floor, open view, quiet facing or more practical layout may be valuable to you. Inspect that benefit. Visit at a relevant time of day, check the floor plan against usable space, and find out what surrounds the unit. Treat a view as something to investigate rather than an assurance that nothing will ever change.
Renovation needs a separate check. The seller’s renovation bill is not automatically the value you receive. Work you would remove adds little to your decision; work you can keep may save time and expense. Obtain your own quotations for necessary repairs and changes.
A project-wide price per square foot can hide these differences. Compare both total price and area: a larger home can have a lower price per square foot and still require a bigger budget. Similar bedroom counts do not necessarily mean similar usable rooms.
| Comparison | Question to resolve |
|---|---|
| Same project, similar size | Are layout, floor, facing and transaction date close enough to be useful? |
| Nearby alternative | How do tenure, age, transport access and maintenance compare? |
| Renovated unit | Which works would you keep, and what would your own unit still need? |
| Cheaper price per square foot | Does the total price buy usable space that matters to your household? |
| Very few recent records | What evidence is missing, and how much uncertainty are you taking on? |
A bank valuation does not choose the home for you
Confirm the property valuation and financing terms directly with your lender. Ask what happens to your financing and cash requirement if the lender’s accepted value is below the agreed purchase price. Have that assessed for your actual ownership and borrowing profile.
Even when the lender accepts the price, you still need to decide whether the unit offers enough value compared with your alternatives. A valuation cannot establish that you will like the layout, tolerate the noise or recover your renovation spending when you sell.
Likewise, a comfortable loan approval does not establish a comfortable household budget. MoneySense recommends considering upfront costs, ongoing expenses and affordability together. See MoneySense’s property-budget guidance.
Set your ceiling before the negotiation
Write down the strongest alternative you could actually buy. Then decide what this unit offers that the alternative does not. Set a maximum purchase price after allowing for applicable taxes, legal costs, required work and a cash reserve. Use verified calculations and quotations for your circumstances.
This ceiling is personal. A home can be reasonably priced against comparable units and still be too expensive for your household. Conversely, you may choose to pay more for a daily benefit you understand and can afford. Be clear that this is your willingness to pay, rather than evidence of a guaranteed resale premium.
Do not raise the ceiling just because a seller rejects the first offer. Ask whether new evidence has changed the value of the unit. If the only new information is that someone else may bid, the affordability calculation has not improved.
Our recommendation: buy, negotiate or move on
Proceed when the comparable evidence is credible, the premium buys benefits you value, necessary work is priced, and the total commitment leaves breathing room.
Negotiate when there is a good home underneath an unsupported asking price. Show which comparisons you used, which differences matter and what offer your budget supports.
Move on when essential facts remain unclear, the seller needs you to price the unit like a superior property, or the purchase works only if prices keep rising. Another buyer’s appetite does not have to become your budget.
Related: Is an older condo good value? · Two bedrooms or three for investment?
MAKE IT ABOUT YOUR PROPERTY
Start with this question for Dex.
I’m considering [project], [unit size] at [asking price]. I plan to [live in it / rent it out] for [holding period]. How does it compare with [alternative], and what would justify paying more?
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Sources and how this guide was prepared
Official guidance checked on 9 September 2026. Prepared with AI assistance using Propdex’s consumer-question research and editorial analysis. Recommendations depend on the property and household. No future price or return is guaranteed.
No tax, CPF or loan amount has been assumed. Confirm the facts, financing and applicable rules before committing.