People reckon second-hand condominium units are mostly ramshackle. The statement has been bandied about in the second-hand condominium market. Some experts even recommend that, If at all possible, it’s best to avoid second-hand condos. Despite the prevalence of this familiar bias against second-hand properties and the battered image of the pre-owned condo sector, the second-hand condominium market bucks the trend and continues to experience robust growth. But the fact is the so-called old and shabby condominiums might not be that old in terms of their condition and value. Let’s explore this issue further with Plus Property.
Second-hand condos have a short lifespan because the building is awfully old: Is it true?
When gauging the quality of second-hand condos, many tend to prioritize a building’s age as the main factor that comes to mind.
Many home buyers reckon the older a building gets, the shorter its service life becomes. Some of you might recall the collapse of a 40-year-old block of cheap flats in Bangkok’s Din Daeng district way back in 2016.
This incident has reinforced the general public perception among some Thais that the older a building gets, the shorter its lifespan. In reality, that building’s age was not really the principal reason for its collapse.
But the real culprit was the lack of appropriate maintenance (or maintenance staff) over a long period time so much so that it contributed to the deterioration of materials in the decrepit building in question and its eventual sad demise. When taking the quality of second-hand condos into consideration, one must realize that a building’s age should not be regarded as the main determining factor.
The real main factor is the quality of the organization that has been hired to take care of the building or the juristic person of the building who is tasked with providing planned maintenance to the condominium so that it is always in good shape.
─ The juristic person is the one who is responsible for finding maintenance staff to carry out the task of maintaining and repairing building components according to their service schedules and maintenance intervals.
The juristic person also needs to have rules and regulations in place to ensure that occupants are barred from constructing additional components in their units that could severely affect the building’s structural integrity.
Take the Empire State Building, for example.
Empire State (source: Ben Dumond)
Built in 1931, the building has functioned efficiently for more than 90 years thanks to regular exceptional maintenance.
Second-hand condos: due to deterioration of materials in second-hand condos, does it make sense to buy a new condo?
Another issue that most home buyers are concerned about is defects and deterioration of materials of second-hand condos because of their old age.
The fact is that in many cases, the older a building becomes, the stronger it is. This has nothing to do with the developers in the past being more talented or possessing some kind of supernatural power.
But the real reason is so simple, according to well-known real estate investor and guru Kittichai Techa-ngarmlert.
“It’s a fact that older buildings tend to have been constructed with better and more durable materials than those of the new buildings. I’m not generalizing from a few examples. But in fact that’s the case with many older buildings. The prices of building materials in the past were not as high as they are nowadays. That’s why builders in the past were able to invest in high-quality materials such as teak and marble. My condo doesn’t have ceramic floor tiles.
New buildings priced at Bt200,000 per square meter are still using ceramic tiles. One of the reasons behind this trend is that prices of building materials have gone up considerably. Builders are trying to save costs by opting for prefabricated materials that can be put together later. The strength and durability of lightweight concrete, for example, is nowhere near that of traditional brick.”
─ However, it isn’t always the case that all the second-hand condominiums use better and stronger materials. But home buyers can seek out the finer second-hand condos on their own or with the help of real estate agents. It’s well worth the time and money spent on the search.
Second-hand condos: dilapidated, old and unliveable units?
Second-hand condo units are often thought of as old and derelict, unlike the new ones. But in reality, those unsightly units only exist in the minority. For most condo owners tend to have bought units for speculation or for letting.
Upon closer scrutiny, you’ll find that condo owners are like the juristic person of a condominium who are tasked with taking care of their property and keeping it in good shape so that homeowners can put their units up for sale at a profit or keep them for letting later in the future should they decide to move out one day. Besides, the second-hand condo units owned by investors are usually in excellent condition as there has never been occupancy.
These investors don’t actually live in the unit they’ve bought either for speculation or selling at a profit when the time is opportune.
─ So, it’s a good idea to consider buying a unit from these investors directly as these second-hand properties tend to be in mint condition. But you have to contend with the fact that these units are pricier than the rest in the same condominium project.
In summary
- Old second-hand condo units do not necessarily have a relatively shorter service life if they receive regular maintenance by the juristic person or their owners.
- Pre-owned units tend to have exceptional strength and durability because of the use of high-quality materials that were a lot less expensive in the past.
- Owners of condo units tend to keep their property in good shape in view of letting it out and selling it in the future.
So, that’s our take on the second-hand condominium market that can be summed up by the slogan: “the older a condo gets, the stronger it becomes.”
If you have any inquiries, or if you’re looking for a new condo location, whether it’s Thonglor or somewhere next to the BTS skytrain network, or if you plan to buy a condo unit, then please contact our experts at Plus Property. We’d be delighted to help and take care of your needs.