OBSOLESCENCE IN REAL ESTATE

Obsolescence in real estate happens when a property loses value because its features, design, or functionality no longer match current standards or buyer preferences.

This is different from a building’s economic life.

A building may physically stand for another 50 years, yet parts of it may already feel outdated or inefficient compared to newer developments.

Here are a few examples of condo features that gradually became obsolete:

1. Centralized Air-Conditioning Systems

Many luxury condos built in the late 1990s and early 2000s used centralized chilled-water or water-cooled A/C systems.

At the time, this was considered premium. But many buildings later shifted to VRF or split-type systems because centralized systems are often less flexible and more expensive to operate. Owners usually cannot cool rooms independently, leading to unnecessary energy consumption and higher costs.

2. Centralized Gas Lines

A few older luxury condos allowed gas-supplied cooking ranges through centralized gas systems.

This was once marketed as a high-end feature. However, after the 2013 Two Serendra explosion, many developers and building operators moved away from centralized gas systems due to safety concerns.

Today, fully electric kitchens are more common in newer developments.

Traditional condo mailboxes may also become obsolete soon.

Modern deliveries are no longer limited to letters. Residents now receive parcels, online purchases, and oversized documents that cannot fit inside small mail slots.

Developers will likely redesign mailrooms around parcel storage, smart lockers, and delivery management systems instead.

This concept also applies to horizontal properties.

Take-away: When building a home or renovating a condo, it’s important to think about obsolescence. Expensive upgrades do not always translate to higher long-term value.

Sometimes, going “all out” on highly customized or trendy features can make a property age faster instead of better.

The goal is to build something that will still make sense to the market years from now.