Are you considering purchasing a home in Singapore but aren’t sure whether to choose a brand-new development or a resale property? It might be difficult to decide when there are so many possibilities on the real estate market. To make an educated decision based on your requirements and preferences, you might benefit from being aware of the distinctions between newly launched and resale homes.
The advantages and disadvantages of purchasing a new launch property vs a resale property are discussed in this blog article. We will also go through the important aspects of your decision-making process, including location, home type, price range, investment objectives, and personal preferences. Whether you are a first-time homebuyer or a seasoned investor, this guide will provide you with valuable insights on how to choose the right property for your needs. So, let’s dive in!
New Launch
New launch properties are ones that have not yet been finished or occupied. The following are some benefits and possible cons of purchasing a new launch property:
Advantages of New Launches
Contemporary amenities: New launches frequently have the newest amenities, like smart home technology, energy-efficient appliances, and trending amenities like coworking spaces.
Options for customization: Purchasers of new launches may be able to choose certain features of the property without additional cost, such as materials and colour themes to meet their own requirements and preferences.
Better quality: Compared to older properties, new launch properties are often created using newer and better building materials and procedures, which can lead to superior quality and durability.
Lower maintenance costs: Since new launch properties are newly constructed, buyers can typically expect lower maintenance costs and fewer repairs in the first few years of ownership.
Potential for higher capital appreciation: New launches are usually sold at similar prices to all buyers, which can create a level playing field for the owners. This means that buyers of new launch properties may have more potential for capital appreciation compared to buyers of resale properties, who may be purchasing at a record high price compared to previous owners.
Potential drawbacks of New Launches
Higher prices: New launch properties tend to be priced higher per square foot compared to resale properties due to their newness and modernity.
Longer waiting times for completion: Since new launch properties are not yet completed, buyers may need to wait for several months or years before they can move in or see a return on their investment.
Resale Properties
On the other hand, resale homes are those that have already been owned and occupied by one or more owners. Here are some of the advantages and potential drawbacks of buying a resale property:
Advantages of Resale Properties
Lower prices: Resale properties tend to be priced lower per square foot compared to nearby new launch properties. However do note that resale properties tend to be older and may require additional cost in renovations or repairs.
Larger Unit Size: In Singapore, older resale properties in general are larger in sizes compared to new launches. The sizes and layouts thus may be more practical for buyers for own stays.
Immediate occupancy: Buyers of resale properties can typically move in immediately after the purchase and do not need to wait for completion or handover.
Better bargaining power: Buyers looking at resale properties may have more bargaining power to negotiate the price or terms of the purchase, especially if the property has been on the market for a while or requires some renovations or repairs.
Potential drawbacks of Resale Properties
Higher maintenance and renovation costs: Resale properties may require more maintenance and repairs compared to new launch properties, especially if they are older or have not been well-maintained by previous owners. Old developments usually will have higher maintenance fee and sinking fund for the upkeep of the whole premises.
Lower potential for capital appreciation: Resale properties may have a lower potential for capital appreciation compared to new launch properties. Older 99 years leasehold resale properties also tend to have a smaller pool of buyers should one look to sell in the future.
| Consideration | New Launch Property | Resale Property |
|---|---|---|
| Property Age | New and under construction | Previously owned and occupied |
| Price | More expensive (per square foot) | Less expensive (per square foot) |
| Facilities and Features | New and modern | Older development and may require higher cost of upkeep |
| Payment Schedule | Paid in stages according to construction progress | Paid in full at time of purchase |
| Waiting Time | May take several years to complete | Immediately available |
| Inspection and Viewings | May not be able to view actual unit | Can view and inspect unit |
| Renovation | Standard design and layout, limited renovation required | Can be renovated according to new owner’s preferences |
| Capital Appreciation | Higher potential | Lower potential |
| Warranty and Defects Liability | Comes with warranty and defects liability period upon TOP | May not come with warranty period |
| Availability | Limited quantities and may sell out quickly | More readily available and offers more choices |
Keep in mind that this is not an exhaustive list of differences and that there may be other factors to consider when deciding between a new launch and resale property.
In conclusion, choosing between a new launch and resale property requires careful consideration of several factors, including budget, location, timeframe, features and facilities, and investment potential. While both options have their pros and cons, ultimately the decision comes down to the individual buyer’s preferences and needs.
At Lushhome, we understand the intricacies of the property market and can help you make an informed decision when it comes to buying a residential property. We can provide you with professional advice on the latest trends in the property market, assist you with property viewings, and guide you through the entire buying process.
If you are looking to buy a new launch or resale property in Singapore, we invite you to engage us as your property consultant. Contact us today to schedule a consultation and let us help you find your dream home.
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– An in-depth financial affordability assessment and timeline planning
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