New Launch vs Resale Condos in Singapore: Comprehensive Guide to Help You Choose
If you're in search of a new home in Singapore and find yourself wavering between a brand-new launch or a resale condominium, this comprehensive guide will help make your decision easier. By focusing on important factors, we'll help you weigh the pros and cons, and provide valuable insights for making an informed choice.
Primary Deciding Factor: Urgency of Occupancy or Rental When considering a new home, it's crucial to evaluate whether you need to move in or rent out the property immediately. If that's the case, a resale unit or a development with a recently issued Temporary Occupation Permit (TOP) might be your best bet. New launch condos in Singapore typically take 3 to 4 years to complete, making them less suitable for those in a hurry to move or eager to generate rental income quickly.
If time isn't a pressing concern, assess the following factors to guide your decision between a new launch condo and exploring the secondary market for property buying opportunities.
New Launch Condos in Singapore Pros:
State-of-the-art facilities and buildings: New launch condos come with modern facilities, sustainable features, and often include smart home technologies.
Attractive pricing and early bird discounts: Developers often offer incentives like early bird discounts and special prices to encourage sales momentum during the initial stages of a project launch.
Fresh 99-year lease: Assuming it's not a freehold or 999-year leasehold property, a new launch condo comes with a new 99-year lease, making lease decay a less pressing concern.
Wide variety of units: With a new launch, you'll have access to a more extensive range of unit options within the development than in the resale market.
Progressive Payment Scheme (PPS) and Deferred Payment Scheme (DPS) available: New launches offer payment schemes that are easier on the pocket, with installment payments made after each stage of construction is completed.
12-month Defects Liability Period (DLP): Developers are responsible for fixing any defects in the unit, housing project, and common property within 12 months from the date of the Notice of Vacant Possession.
Lower maintenance costs: Newer buildings and facilities typically require lower maintenance expenses than older condominium developments.
Cons:
Waiting time for completion: New launch condos in Singapore can take 3 to 4 years to complete, which may not be suitable for those in a rush.
Uncertainty regarding neighbors and local amenities: There's some level of uncertainty with a new launch, as you can't predict who your neighbors will be or whether the surrounding amenities will meet your needs.
Show flat vs. actual finished project: The quality of the completed project can be uncertain, and in some cases, the actual development may deviate from what was presented during the launch.
Resale Condos in Singapore Pros:
Immediate occupancy or rental: Unlike new launches, resale units are ready for move-in or rental almost immediately, allowing you to start collecting rental income sooner.
Potential for good value deals: In distressed sale situations, there's a chance to secure an under-priced unit if the seller urgently needs to dispose of the property.
Greater certainty with a completed development: Buying a resale unit offers more certainty, as you can thoroughly evaluate the property, assess the surrounding amenities, and even get a sense of the neighbors.
Potential savings on renovation: If you find a well-maintained and renovated unit that suits your taste, you may save on renovation costs, time, and effort.
Cons:
Lease decay: For 99-leasehold properties, be sure to check the lease balance, as lease decay can negatively impact the property's value as it gets older.
Aging facilities and buildings: The development's facilities will be older and may appear dated. Additionally, it can be costlier to repair and maintain an aging building, including plumbing pipes and systems. 3. No Defects Liability Period (DLP): Unlike new launches, resale units don't come with a 1-year DLP. It's the buyer's responsibility to carefully assess the unit's condition before purchase.
No Progressive Payment Scheme and potential for Cash Over Valuation (COV): In the resale market, there's no Progressive Payment Scheme. Buyers need to pay a 25% down payment when the sale is completed, and monthly repayments begin immediately. Moreover, if the purchase price is higher than the valuation, the portion over valuation must be paid in cash.
By considering the pros and cons of new launch and resale condos in Singapore, you'll be better equipped to make an informed decision based on your unique needs and preferences.
