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So you’ve decided to buy a condo. Now, you’re probably asking yourself, which is the better choice? Buying a brand new or a resale condo? - Which one of the two is a better investment? Which option makes the most monetary sense? These questions can be answered depending on the purpose of your purchase. 

First you have to ask yourself, why are you buying a condo? Are you looking for en bloc potential to turn a profit? Are you trying to find a nice home for yourself and your family? Or are you looking to find the right place that can make passive income through rental yield? Each of these questions lead to different answers. Once you’ve got your intention for purchase, you can start to explore your options. 

In this article we will be comparing new launch and resale condominiums. What makes each of them unique and what are the key selling points for each condominium. Let’s begin.

 

 

New Launch Condo

Resale Condo

Condition

  1. In brand new condition. New condo apartments come with new cabinets, fixtures, plumbing and appliances. Some developers have also been including premium appliances like Miele, Gaggenau, which add a nice touch of class to your new home. There is also a twelve months Defect Liability Period, during which the developer is responsible for rectifying any defects.
  1. This varies from condo to condo, and unit to unit. If you find a well maintained or well renovated unit, you can easily move in without having much to be done to the place. However, for older condos or units, watch out for water leakage, cracks in the walls, faulty air-con, etc, that could quickly blow up your renovation budget. 

Showflats

vs

Reality

  1. Most new condos are sold off-plan, with the actual property still under construction. As such, you can only rely on the show flats, with their designer furniture, fancy lighting, markings on the floor instead of actual windows/doors. At times, these showflats may not give you a realistic feel of your future home. 
  1. With resale condos, what you see is what you get. You can get a better feel of the view, the corridor, lift lobby, the neighbours, before deciding whether the unit is worth taking up or not.

Size

  1. Given the rising property prices, new launch condos are typically more efficiently designed (but smaller). 
  1. Resale condos are bigger than new launch condos. This is generally true. For example, a 3 bedroom resale condo at Amber Skye in D15 is sized at 1,335sf while a brand new 3 bedroom new launch condo at Amber Park in the same district is sized at only 947-1270sf. That’s a big difference. So if you’re looking for a bigger space, a resale condo might be more up your street. 

Facilities

  1. More updated infrastructure including design and facilities. Also, developers have been more innovative in adding rooftop pools, aqua gyms, sky gardens, karaoke rooms, concierge, luxurious kitchen and dining facilities and even golf driving ranges.
  1. While gyms, swimming pool, BBQ pits, and function rooms have been standard in the past, these could be outdated in design or not as well maintained throughout the years. 

Pricing

&

Finance

  1. New launch pricing is typically much higher than resale condos, however, there could be discounts available. With new launch projects, there are a number of perks that you can get such as early bird / early launch discounts

    Developers can also provide you with a number of discounts such as vouchers or stamp duty reimbursements.

    There are also “further discounted balance” sale properties, which are discounts given out by project developers when the new launch condo is reaching its 5 year Additional Buyer’s Stamp Duty (ABSD) deadline.
  2. Flexible payment schemes. For new launch condos, there are payments schemes that help to spread out the cash outlay. These payment schemes are the Progressive Payment Scheme (PPS) and the Deferred Payment Scheme (DPS) offered by developers.
  1. More room for negotiation. With resale condos, you are able to negotiate the final price. Because it is resale, you can do your homework and check out the prices of other sold units within the condominium project to make informed decisions on how much to offer for the unit you’re interested in. And from there you can negotiate with the seller.

  2. Possibility to find a diamond in the rough aka properties being sold under market value. Resale condos are sold by sellers who are motivated by different reasons. You might just find the right seller who’s maybe selling their condo under valued, or someone who’s trying to sell their property quickly. There are always good value buys lurking around. You just have to find them. And who knows, there is a possibility that you might get  to buy one.  

Rentability

  1. With new condos, you have to wait for the project to TOP before you rent it out. While tenants generally look forward to the better facilities and condition of the condo, there is the risk that a large number of purchasers are investors who are also looking to rent out their units, competing with you to attract tenants. 
  1. Easy to rent out, especially if you purchase a unit that is already tenanted, you may receive rent from Day 1.
  2. With resale condos, you are also able to make a more predictable rental income. With the help from URA, you can measure current and past rental data to gauge how much rent you can receive for the unit  and if it is worth the investment.

Availability

  1. More unit options to choose from the project. Depending on the availability, with a new launch project you actually have more options to choose from according to your preference. For example, which direction the unit faces, which floor you prefer, closer to facilities, closer to carpark, etc. 
  1. More condos available for your choosing. With resale, there are so many to choose from. If one project doesn’t fit what you’re looking for, you can always turn to the next one. Sooner or later, you will find one that works for you with the right connectivity, schools and location.  Remember location, location and location is key in choosing a property.

 

In conclusion, both new launch condominiums and resale condominiums each have their pointers. What really matter is what you are looking for. Someone who is looking for a unit to make passive income through property rental is not going to see eye to eye as someone who wants the luxury of everything that is new and up to date. At the end of the day, the choice is yours and no choice is a wrong choice.  Remember, “you cut the cloth according to your need and affordability”.

If you are looking for more guidance on what may be a better fit for you, you can drop us an enquiry at the button below and we will be more than happy to help you out. 

Contact Us

If you need the right tools to help you out in buying a resale flat, you may use our “Condo Transaction Prices” tool linked below. This will help you to get an idea on how much condos have been sold and what is the right price to offer during the negotiation process. 

Condo Transaction Prices

Also, if you're buying a resale flat why not enlist a buyer agent for free. As we mentioned above, there are so many resale options to choose from and do we have the time to look at them all? No. That’s why there are buyer agents. And best of all, they’re free! So if you're looking for a buyer agent, you can contact us at 6223 2801 or drop us an email at Sales@auctionjia.com.sg.