The first major decision that a home buyer needs to make after deciding to purchase a property in Singapore is whether to buy a new launch or a resale condo. The different choices available offer various advantages and disadvantages, and it greatly depends on your circumstances, finances, and future intentions.
This guide will show you the top things to think about so you can make a decision that suits your lifestyle and investment goals.
1. Is new launch condo a better investment
New Launch Condo
Typically, payments are staged over several years through progressive payment schemes.
You need not to pay the full cost upfront like resale condo as you will be paying based on the stage of construction.
You will have to wait longer before you can move in since construction must be done.
Resale Condo
Immediate move-in upon transaction completion
You need to pay the full fee (by cash, CPF and/or loan) way earlier.
Additional costs, such as renovations, may apply
This means that if you are not in a hurry and want to stretch your financial commitment, a new launch would be suitable for you. If you require a house urgently, a resale condo is the most suitable option.
2. Price Increase Possibility: What Gives Greater Advantage?
New Launch Condo
Discounts or priced promotions for early-bird buyers may help in capital appreciation when completed.
Modern amenities, updated designs, and higher demand can boost resale value.
Resale Condo
Prices may be more negotiable
Resale condos in prime locations that are either near MRT stations or reputable schools tend to have good demand.
If your main concern is achieving a return on investment, you will usually get a better return on top with new launches. But the location and project quality must be largely researched.
3. Space and Layout Considerations
New Launch Condo
This property has modern smart-home technology and efficient layouts.
Generally, smaller unit sizes compared to older condos
Resale Condo
Most often, older condos offer large unit sizes, especially those created before the 2010s. Some of the layouts feel old-fashioned.
Tip: Families or those who value space may find older resale units more appealing, while singles or young couples may find new launches more suitable for their housing needs.
4. What are the facilities and amenities you consider important?
New Launch Condo
Provides fashionable and new facilities such as co-working space, smart gyms, and green gardens
the maintenance fees may be high, but are required for upkeep of complex amenities
Resale Condo
Facilities could be older and less modern
Fees for Maintenance may be on the lower side, but upgrades will lead to future special levies.
To find out what repairs to expect and how much they would cost, check the condo’s Management Corporation Strata Title (MCST) minutes.
5. The location is essential as the new and resale option in Singapore differs.
New Launch Condo
Often situated in emerging or new townships
Has good future potential but lacks amenities in the vicinity as of now.
Resale Condo
The newly built houses are in well-established neighborhoods that have all the essential amenities.
When it comes to buying a condo, new or resale, consider your lifestyle needs. If you need convenience, resale would be better choice.
6. Customisation and Renovation Costs
New Launch Condo
Move-in ready with contemporary interiors
You will not need to change much unless you want to personalise it.
Resale Condo
May need major renovations, increasing total costs.
Provides an opportunity to customise fully to your taste
When buying a resale property, make sure to factor in renovation costs.
7. Rental Income Potential
New Launch Condo
Usually gives lower rental yield upon completion due to attractive new facilities.
Initially, the rental market may be quite competitive as several new units may come on.
Resale Condo
Immediate rental potential if already tenanted
Rents on older developments but usually only if they are well-kept.
To always keep in mind that newer properties often attract premium rents but location is a major determining factor.
Deciding Which Property to Choose: Personal Decision or Financial Decision?
Ultimately, the choice between a new condo launch and a resale condo comes down to personal preference, urgency, financial plan, and investment timeline.
Are you struggling to figure out which property option is right for you? Contact me for a personalised consultation and take a step closer to your dream home!
