New launch properties and resale condos are two popular options for those looking to buy a home in Singapore. Both have their own advantages and disadvantages, and the decision between the two ultimately depends on the buyer’s preferences and priorities.
New launch properties are typically more expensive than resale condos, but they come with the benefit of being brand new and equipped with the latest facilities and amenities. They also offer more flexibility in downpayment and monthly mortgage payments. On the other hand, resale condos are generally cheaper and offer a wider range of options in terms of location and unit size.
Investors looking to buy a property for rental purposes may also have different considerations when choosing between new launch and resale condos. While new launches may offer a higher potential for capital appreciation, resale condos may be less risky for new landlords. It is important to weigh the pros and cons of each option and consider factors such as location, price, and future growth potential before making a decision.
New Vs Resale Condo Trend
Analyzing Google Search Data for New Vs. Resale Condos Over the Last 90 Days
New Launch vs Resale Condo
Comparing the advantages and disadvantages of new launch condos and resale condos in Singapore:
|New Launch Condos||– Potential for capital appreciation||– Uncertainty surrounding development|
|– Ability to customize property||– Potential for oversupply|
|– New facilities and amenities||– Longer waiting period before move-in|
|Resale Condos||– Immediate occupancy||– Higher upfront cost|
|– Established community||– Higher renovation costs|
|– No ABSD||– Lower rental yield|
As you can see, both new launch condos and resale condos have their advantages and disadvantages. It’s important to consider your individual needs and preferences, as well as the current market conditions, before making a decision.
Resale rental income
When it comes to investment potential, new launches and resale condos have their own advantages and disadvantages. New launches tend to have a higher potential for capital appreciation, as they are often priced lower than resale condos and have the potential to appreciate in value as the development nears completion.
Resale condos, on the other hand, often have a proven track record of rental yield and may already have tenants in place, making them a more stable investment option for those looking for immediate rental income.
The rental yield for condos in Singapore remains low to moderate, ranging between 4.00% to 5.56%. However, there are some properties that yield above 5%, mostly 99-year leasehold and located in the mass market districts where capital values are lower.
resale Down Payment
One of the main financial considerations when choosing between a new launch and a resale condo is the payment scheme. New launches often offer a progressive payment scheme (PPS), which allows buyers to make payments in stages as the development progresses. This can be easier on cash flow compared to resale condos, which typically require a 25% down payment upfront.
However, resale condos may offer deferred payment schemes (DPS) that allow buyers to pay a smaller down payment upfront and defer the remaining balance to a later date. Another financial consideration is maintenance costs. New launches may have lower maintenance costs initially, but these costs may increase over time as the development ages. Resale condos may have higher maintenance costs upfront, but these costs may be more predictable and stable over time.
Resale renovation cost
The physical condition of a new launch and resale condo can also be a factor in the decision-making process. New launches are often defect-free and come with a defects-free period, during which any issues with the unit can be addressed by the developer. Resale condos may have some wear and tear, but buyers can inspect the unit before purchase to ensure that it is in good condition. Facilities and communal areas can also be a consideration. New launches often come with state-of-the-art facilities and communal areas, while resale condos may have older facilities that may require upgrading or renovation.
On average, the renovation cost for a Singapore condo ranges between $30,000 to $150,000. However, according to Qanvast, if you’re looking to renovate a resale flat, be prepared to spend up to 40% more. This is due to the additional costs involved in renovating an older unit, such as hacking and disposal fees.
Overall, choosing between a new launch and a resale condo requires due diligence and consideration of various factors such as investment potential, financial considerations, and physical condition. It is important for both new landlords and seasoned investors to assess their options carefully and be prepared for any surprises that may arise.
List Of New Condo Launches In 2023
Est $TBA PSF
Hillview MRT Station
Est. Launched: 31/12/23
Lentor Gardens Residences
Est $TBA PSF
Lentor MRT Station
Est. Launched: 31/12/23
New Launch Condos
New launch condos are properties that have not yet been completed and are being sold to buyers before construction has finished. In Singapore, these condos are often sold during the pre-launch or launch phase, with prices typically increasing as construction progresses.
One of the main advantages of buying a new launch condo is the potential for capital appreciation. As the property is not yet completed, buyers can purchase it at a lower price than they would for a completed property. As construction progresses, the value of the property is likely to increase, resulting in a potential profit for the buyer.
Another advantage is the ability to customize the property. New launch condos often offer buyers the opportunity to choose from a range of finishes and fittings, allowing them to create a home that suits their personal style and preferences.
Additionally, new launch condos often come with new facilities and amenities, such as swimming pools, gyms, and playgrounds. These facilities are typically well-maintained and can add value to the property.
One of the main disadvantages of buying a new launch condo is the uncertainty surrounding the development. As the property has not yet been completed, buyers may not know exactly what they are getting. There is a risk that the final product may differ from the initial plans or that the development may be delayed.
Another disadvantage is the potential for oversupply. As new launch condos are often sold in large quantities, there is a risk that the market may become saturated, resulting in a surplus of properties and a decrease in value.
Finally, new launch condos often require a longer waiting period before the buyer can move in. This can be inconvenient for buyers who are looking for a property that is ready for immediate occupancy.
Resale condos are units that have already been built and occupied by previous owners. They are often sold by the previous owners, and the new buyers will take over the remaining leasehold period of the unit. Here are some advantages and disadvantages of buying a resale condo in Singapore.
- Immediate occupancy: One of the biggest advantages of buying a resale condo is that the buyer can move in immediately after the transaction is completed. There is no need to wait for the construction to be completed, as in the case of new launches.
- Established community: Resale condos are often located in established neighborhoods with a well-developed infrastructure. This means that there are already amenities such as schools, shops, and public transportation nearby.
- No ABSD: Buyers of resale condos do not have to pay the Additional Buyer’s Stamp Duty (ABSD), which is a tax levied on buyers who are not Singapore citizens or Permanent Residents.
- Higher upfront cost: Buyers of resale condos need to pay the full purchase price upfront, unlike new launches where buyers can pay in stages. This can be a significant financial burden, especially for first-time buyers.
- Higher renovation costs: Resale condos may require renovation or repairs, which can be costly. Unlike new launches, where the units are brand new and come with a warranty, resale units may have wear and tear or other issues that need to be addressed.
- Lower rental yield: Resale condos may have a lower rental yield compared to new launches. This is because resale units may be older and require more maintenance, which can drive up the cost of owning the unit.