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New Launch or Resale Condo | Making The Right Choice Yourself

new launch vs resale condo

Today we will be discussing one of the most popular debates amongst property investors in Singapore: New Launch or Resale Condos?

If you are a new property investor looking to enter the property market, this could be a topic you have been discussing with your friends, agents and even fellow property investors.

In tackling this discussion, I’ll dive into three key sections (feel free to jump straight to what interests you most):

  1. Identifying Your Personal Objectives
  2. Benefits of New Launches Versus Advantages of Resale Condos
  3. Real Case Studies Examples: Analyzing the Performance of New Launches Compared to Resale Condos
 
 
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Table of Contents

Identifying Your Personal Objectives

In my consistent approach of addressing all clients’ property needs, the very first step of any property purchase is always to understand everyone’s personal goals regarding the property.

Many times, the best choice for one investor may not be the same for another – simply because everyone has different circumstances and goal in mind.

So, if your friend Gavin says buying a New Launch condo was the BEST Investment for him, do not just trust him blindly and rush into it too.

Take everyone’s opinion with a pinch of salt.

Make sure to weigh and balance their opinions against your own needs to make sure YOU are making the best choice for YOU!

Here are a few questions that you can keep in mind as you read through this breakdown between New Launches and Resale Condos:

  • What are your goals of buying this property?

  • Do you need to move in immediately?

  • Do you have plans to make this your “forever home” or do you intend to sell for gains in the future?

  • Are capital gains important to you?

Benefits of New Launches Versus Advantages of Resale Condos

Here is a quick overview of the comparison of New Launches and Resale Condos before we address the benefits of each option one by one.

pros-of-new-launch-vs-resale-condo

Let us start off with the Pros of buying a Resale Condo.

Pros of Buying Resale Condos

1) Immediate move in and immediate rental

This is possibly one of the most apparent benefits of a Resale Condo.

Given that the property is already on the market, you can expect key collection within a few months instead of years for a New Condo development.

This is incredibly attractive for investors who are looking to kick off collecting rental income as soon as possible to pay off the mortgage loan.

In fact, in the best situation, some units even come with existing tenancy, so you could be buying the unit with an existing tenant and can start getting rents immediately after the purchase completion.

2) Clear rental expectation

Having a historical rental income for a resale unit gives the new potential owner an extremely clear rental expectation.

No guesswork required.

No need to research the rental rates in the neighbourhood to extrapolate your potential income stream. Simply check the existing or past rental rates the tenants have been paying for your specific unit.

This is reassuring for new investors who may not be accustomed to having to forecast potential rental income.

3) Cheaper Psf (per square foot) seen in Resale Condo

Many new investors are initially attracted to Resale Condos because you can usually find lower psf for resale developments as compared to New Launch Condo in the same neighbourhood.

For example, where a $2,000 psf for a new launch condo in location A, you may get $1,700 psf for a resale unit within the same vicinity.

Anyone will feel like they have found an awesome deal! In some cases, yes, the cheaper psf works out to be a great deal.

But if you take into consideration all other factors, is it still the case?

Pricing is a helpful indicator of value, but its only one of many. We will address this in the section later, with our case studies trend analysis.

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4) Resale Condo are of Larger Size

There is not much to say here. If you are a Singaporean, you already know that older property developments tend to offer the luxury of space as compared to new launches.

So, if space-price value is a huge consideration for you, then this is a definite pro!

5) What you see is what you get

Compared to new launches, a Resale Condo is a completed product. No visualization required.

If virtual tours, or show flats do not do it for you, a resale unit is probably the way to go!

6) Potential under-value purchase

With Resale Condos, like any other resale property types, there are many possible reasons why owners choose to sell.

In certain cases, the seller may have practical reasons which result in them having to let go of the property below its true value.

If you do enough groundwork and with some luck, you could get a great deal for your investment

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Next, let us look at the Pros of buying a New Launch Condo.

Pros of Buying New Launch Condo

1) New Launch Developers Incentive (Promotions)

new-launch-condo

Unlike Resale Condos, New Launches have the benefit of price promotions.

This is a common practice amongst developers in Singapore. To create awareness for their new project, developers typically tie their previews and launches together with huge developer discounts for the early birds.

As you can see from the graph, prices move up steadily in-line with launch phases.

Once the project is nearing TOP, buyers usually have to pay a premium price for it.

So, for the early birds who manage to lock-in at a softer price, put themselves in a first-mover advantage position and benefit from these “built-in” profits.

2) Lower cost of maintenance

Buying new property comes with the benefit of not having to do much to upkeep the unit. Most developers provide one years of defect liability – it is like a warranty for your property.

Unlike Resale Condos where you might need to spend additional costs for renovation (usually in the range of $60,000 to $100,000 from experience), there is minimal of such costs for a New Launch.

Remember if this is an investment, any additional cost will take a bite into your gains.

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3) Newer Facilities and Technologies

resale-condo

With each new development, developers consistently out-do each other with better and newer facilities offerings above and beyond the standard.

Compared to older Resale Condos, more New Launches comes with incredible resort-like facilities such as rooftop infinity pools, in-built smart home technology, sky gardens and even concierge services.

From an investment perspective, these new facilities and technologies will play a factor in helping you attract discerning potential tenants as well as setting higher rents.

4) Lower price quantum

The smaller size of New Launches also indirectly results in lower overall prices.

If you are interested in a lower overall investment outlay for the same number of rooms – a New Launch could grab your interest.

5) Smaller initial mortgage loans

Finally, as payment of properties are made progressively.

Compared to Resale Condos, the mortgage loans will be smaller for the New Launches.

Case Studies Comparing Actual Performance of New Launches vs. Resale Condos

After a debate on the qualitative benefits of New Launches vs. Resale Condos, now let us look at a quantitative performance of 3 pairs of properties in 3 different neighborhoods over the years.

If you are interested in capital gains, take a closer look!

District 18:

should i buy resale condo or new launch

Here we have a comparison of Treasure At Tampines (New launch in 2019) versus My Manhattan (TOP in 2014).

Can you tell from the numbers if the New Launch or Resale Condo performed better after 2019?

New Launch – Treasure At Tampines, psf increased +22.55%

Resale Condo – My Manhattan, psf increased +16.67%%

District 20:

is new launch condo a better buy

For the second case study, we have a comparison of Jadescape (New launch in 2018) versus Tresalveo (TOP in 2012).

Can you tell from the numbers if the New Launch or Resale Condo performed better after 2019?

New Launch – Jadescape, psf increased +25.81%

Resale Condo – Tresalveo, psf increased +19.34%

District 05:

resale condo perform better than new launch

For the third case study, we have a comparison of Parc Clematis (New launch in 2019) versus Regent Park (TOP in 1997).

Can you tell from the numbers if the New Launch or Resale Condo performed better after 2019?

New Launch – Parc Clematis, psf increased +23.52%

Resale Condo – Regent Park, psf increased +24.9%

Condo price increase after TOP

Summary

What do the numbers show us?

Exploring three distinct sets of comparisons between New Launches and Resale Condos across three unique districts, we observe varying outcomes in terms of potential capital gains.

Whether situated in established neighborhoods, areas currently in vogue, or even in neighborhoods on the verge of popularity, the performance differs – New Launches do not always lead in terms of better returns. 

This highlights the critical need for comprehensive and precise research prior to making investment decisions.

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Conclusion

To wrap up, it’s clear that both New Launches and Resale Condos come with their own advantages for those looking to buy or invest in property.

A careful balance between personal needs and desires, alongside thorough data analysis across various locations, and in-depth research, is essential.

Bonus for my readers

Looking to buy a condo in Singapore but not sure whether to go for a new launch or a resale unit?

I can help you navigate the market and make an informed decision. Don’t hesitate to reach out to me for personalized advice and expert guidance on your condo purchase journey.

Let’s find your dream home together!

Topics I will be covering in the discussion:

  1. Overview of New Launch and Resale Condos

  2. Price Comparison

  3. Financing and Payment Schemes

  4. Immediate Occupancy vs. Waiting Period

  5. Potential for Appreciation

  6. Amenities and Facilities

  7. Maintenance and Renovation

  8. Location and Community

  9. Regulatory Considerations

  10. Case Studies and Real-Life Examples

  11. Pros and Cons Summary

  12. Conclusion and Personal Recommendation

Who should apply?

  1. First-time homebuyers who are considering investing in a condo for the first time
  2. Upgraders who are looking to upgrade their current living situation and are considering purchasing a condo as their next home
  3. Investors who are looking to add to their property portfolio by purchasing a condo in Singapore

Questions and Answers

  1. Q: What are some benefits of purchasing a new launch condo in Singapore?
    A: Some benefits of purchasing a new launch condo in Singapore include the potential for capital appreciation, modern amenities and facilities, and the opportunity to customize your unit according to your preferences.

     

  2. Q: What factors should I consider when deciding between a new launch and a resale condo in Singapore?
    A: Factors to consider when deciding between a new launch and a resale condo in Singapore include location, price, age and condition of the property, amenities and facilities, and potential for capital appreciation.

  3. Can I work with a realtor to help me navigate the condo market in Singapore?
    A: Yes, working with a realtor can be a great way to get personalized advice and expert guidance on your condo purchase journey in Singapore. A realtor can help you understand the market trends, find properties that meet your criteria, and negotiate on your behalf.

Awards and Accolades

Rick Long
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Testimonials

I have successfully helped hundreds of homeowners just like you since 2010

Mr Ang
Mr Ang
Buyer of Parc Riviera
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As a investor interested in taking advantage of the booming property market in Singapore, I needed a realtor with in-depth knowledge of the local market. Using his understanding of the various sectors of the market, Rick generated a investment progression report and we decided to buy a condominium in a choice area with huge potential for multiple returns in the future. Thanks Rick, I will definitely be doing business with you for a long time!
Ms Claire
Ms Claire
Seller of Esparina Residences
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I am writing in to compliment Rick Huang for his invaluable service, for the sale of my Esparina Residences. The process was complicated but he was able to empathize with my situation and also provide brilliant advices that ensue the smooth transaction. In all, I am appreciative with his professionalism and human touch in this journey. Thank you!
Ms Ho
Ms Ho
Seller of Blk 272b Punggol
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I was sceptical about engaging a friend to sell our house. However, Rick has put himself out on so many levels just to ensure everything went smoothly, promptly and correctly at every stage. I trust Rick and would surely recommend him to anybody seeking to buy or sell a home! I do not usually post reviews but this is worth investing my time. Thanks once again..
Ms Malar
Ms Malar
Seller of Blk 332 Serangoon
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His service is beyond my expectations. Always going the extra miles to serve his clients.
Ms Jo
Ms Jo
Buyer of Blk 452a Sengkang
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My husband and I started our home-search by ourselves but was met with issues soon enough as we were unsure of the important things and areas to look out for and we were also not experienced in the negotiation process with the seller’s representing agent. Soon after hearing our problems, I was introduced to Rick by a friend. The entire buying process quickly became swift and smooth; Rick understands our needs, puts our personal interest first, seals us a good deal and educated us along the way about the important things and areas to pay attention to. Thumbs up to Rick and we will recommend him to anyone for their home-search
Mr Eddie
Mr Eddie
Seller of 127c Kim Tian
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"In short, Rick did an amazing job. He sold our house at a higher than initially discussed price and got us a good deal for our purchase. Both my wife and I are impressed with his professional yet friendly approach. We will definitely work with him again and recommend him to anyone."
Mr Liew
Mr Liew
Seller of 260c Punggol
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Rick is a very down to earth person. No hard sell or pushy technique. He helped us in planning for upgrade and showing us how to invest in property with in depth property analysis report.
Miss Chong
Miss Chong
Buyer of Regent Residences
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His service is superb. With his property mkt analysis skill, I managed to purchase my first property in Singapore. He is always patient and helpful whenever I have any query about property purchase procedure, especially the computation part of the downpayment. In nutshell, I am really grateful and appreciate for his support.
Selvi
Selvi
Buyer of Blk 130 Bishan
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Rick is an agent who has displayed his potential in his services. He provided us a very personalised guidance when we first approached him with an intention of purchasing a resale flat. With his knowledge and years of experience has made the entire purchasing process seamless. Thank you Rick for being a great friend and a fantastic agent!
Mr Mark
Mr Mark
Seller of Blk 686a Woodlands
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Rick service has a very personal touch. He was extremely patient and professional and does not rush us into making any decisions he provided us with sound advice whenever we have questions and was always ready to provide help with regards to any matter. What impress us the most was the extra step he went by assisting us with the purchase of our new home, even though this was in no way his responsibility to do so. Thank you for the hassle free experience Rick. Highly recommended
Mr Shawn
Mr Shawn
Buyer of Riverfront Residences
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"It was a pleasure working with Rick throughout my selling and upgrading journey. His recommendations and knowledge of financial calculations and preparations are impressive - even factoring in risk management specific to us, for the next 5 to 8 years. He has shown his expertise in real estate and guided us step by step all the way, making transactions effortless for us. Well done Rick!
Ms Shufen
Ms Shufen
Buyer of Cairnhill Crest
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Rick has been our go-to agent for our past few property transactions He actually patiently brought us to many various property viewings (I think it was more than 10!) before we finally settled on the Cairnhill unit. Rick also helped us iron out all the issues encountered along the way and we are very thankful for his service. Hence, we will continue to engage Rick for all our property related matters. We have encountered many agents throughout the years but Rick is the one that has the most profound display of professionalism, knowledge and dedication in his job. Please keep up the good work!"
Ms Meena
Ms Meena
Seller of Blk 475c Upper Serangoon
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Rick's guidance really helps us to sell our unit at a good rate. He did a excellent job giving us professional assistance from step by step till the keys are handed over to the new owner.
Mr Kingsley
Mr Kingsley
Seller of Blk 91 Tanglin
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We have worked with a few property agents. We find the interests of the agent are not well aligned with either the buyers or sellers as volume of transactions matter more. With Rick, you can be assured that your interests are well protected at all times. It is reassuring that he shares his opnion objectively to allow home buyers or home seekers to evaluate the decisions for themselves. Overall a smooth experience. Thanks Rick!
Ms Su
Ms Su
Seller of Blk 93 Paya Lebar Way
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"Rick was introduced by a close friend of mine. This is my second time buying a flat (first time was 20 years ago) and I have forgotten all the procedure. With no experience dealing with selling and buying, this is my honest testimonial. Rick is a very responsible agent which I've met so far. Fast response to all my enquiries and he answered to all my doubts which I have. Reliable and he knows exactly what to do and will give you his utmost advise and service. I highly reckon Rick to those have the intention of getting property agent. Thanks so much Rick for the help and assistance you have rendered from start until the end of transaction. I would definitely recommend you to my relatives and friends. Cheers
Shah
Shah
Seller of Blk 227a Compassvale
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My wife and I are grateful that a friend of ours referred us to Rick to help sell our unit. Rick responded fast to all of our queries. In fact, we managed to sell off the unit faster than we expected thanks to Rick. He did not even need to resort to cheesy gimmicks and marketing. The journey was kept professional. Despite the toxic culture of the property industry, we can feel that he is sincere and committed in helping us. He is trustworthy and we felt that we were in safe hands with Rick as our agent.
Ms Sharon
Ms Sharon
Seller of Blk 648 Ang Mo Kio
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I had in the past dealt with agents who were pushy and did not do their homework. But with Rick, I am put at ease with someone who is not only very knowledgeable but understanding. He keeps my family posted on what we need to know, is very diplomatic, tactful and professional. If you need your place sold, you need a reliable person like Rick to help you. Thanks Rick once again. Warmest Regards, Sharon Lim
Mr Sri
Mr Sri
Buyer of River Isles
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Rick was introduced to me by a friend, who has seen Rick while he was helping another client. Rick has played an exceptional role while I was buying a private property. He is patient, humble, polite and a nice human being. I highly recommend him if you are looking for an agent in your property hunting. I worked with several agents but he will be my go to agent for any future deals. It was excellent experience..!
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Self Introduction

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Greetings! My name is Rick Long, and I am proud to serve as the Associate Division Director of Huttons Asia Pte Ltd, with over a decade of experience in the real estate industry.

My passion for helping clients find their dream homes has grown exponentially during my tenure in the field. As a graduate of Singapore Polytechnic, I have always valued the importance of hard work and determination.

My prior experience serving in the airforce instilled in me the value of teamwork, perseverance, and discipline.

Over the years, I have been privileged to receive several accolades for providing exceptional service and dedication to my clients.

My ultimate goal is to ensure that each individual I work with has the best possible experience, whether they are buying or selling a property.

One of the most rewarding aspects of my work is receiving glowing five-star reviews from satisfied clients.

Knowing that I have positively impacted someone’s life is truly humbling, and it motivates me to continue striving for excellence every day.

When I am not working, I enjoy spending quality time with my loved ones, indulging my passion for sports, and exploring the rich and diverse culinary landscape of Singapore.

Amidst the bustling pace of life, I relish moments of calm by immersing myself in the art of tea-brewing and teapot appreciation.

Thank you for taking the time to learn a little more about me. I look forward to the opportunity to work with you.

Additionally, Rick is a proud fur daddy to two rescue kitties and loves spending his free time with his wife and furbabies. He believes in giving back to the community and volunteers his time to animal welfare causes whenever possible.

Related Articles:

Ever wonder if you are suitable for Sell one buy two investment concept? – Read more (Sell one buy two)

Is buying new launch or resale condo have better returns? – Read more (New Launch vs Resale condo)

Looking to upgrade from Hdb to condo? – Read more (Sell Hdb buy condo)

What to take note when selling Hdb resale flat? – Read more (Hdb Resale Process)

Buying another Hdb flat, and using the fund from current home? – Read more (Hdb contra)

Why do some Hdb flat price depreciate so much? – Read more (Hdb depreciation curve)

What is one of the most common reason for property negative sales? – Read more (Cpf accrued interest)

Financial calculation for selling a Hdb flat? – Read more (Hdb resale calculator)

Buying EC before selling your HDB? – Read more (Upgrade to EC before selling your HDB)

Should you sell your EC after 5 years? – Read more (Selling EC)

This Post Has One Comment

  1. Terry 5 May 2020 Reply

    You are right, there is always a good friend/bro that likes to give ‘advise’ base on own opinions, LOL. Great that i came across this article. Will be in contact after CB. Thanks

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