Should you purchase a new launch condo or a resale condo in singapore?
- Giselle L
- Apr 4, 2024
- 4 min read
Updated: Sep 24, 2024
Speaking about private residential property, the most commonly asked question is always, "Should I purchase a new condo or an old condo (otherwise known as resale)?", "what are the pros and cons of both?"
It is a common dilemma for many homebuyers, be it first-time home buyers or even existing owners of a residential property looking to upgrade or invest. If you are also wondering the same, you landed at the right place!
In this article, let's explore the pros and cons of buying a new launch condo development
VS a resale in Singapore. New Launch aka BUC (Building Under Construction)
Pros:
New amenities: these amenities can elevate your living experience. One fine example will be Sky Eden@Bedok. As the name suggests - there's a sky garden at every level for lush greenery lovers.
12-month Developer Warranty: Everyone loves a good warranty, don't we? Also known as a Defect Liability Period, typically provided by the Developer to give buyers peace of mind against structural defects and issues with fittings and fixtures for a specified period. The warranty kicks in upon the date of key collection.
Capital Appreciation: Buying into a new condo development before its completion stage may offer the potential for capital appreciation as the surrounding area slowly develops and matures over time. You be able to attain a higher yield after this as you enter at a very early entry price similar to when you purchase a new BTO where you are the first-hand owner. You are also able to choose your units be it a certain facing direction or higher/lower levels.
Progressive Payment Scheme: As the name suggests, you will not be paying the full sum in one shot. Instead, it will be in progressive stages. You only pay when you are at each construction stage. For example, you would pay one instalment after foundation work is completed, another payment when the walls are up, etc. Payment will increase progressively as more development is done. Similar to the type of payment scheme when you hire a contractor when you renovate your new home. 5% deposit, 15% carpentry works and so on.
There are two sides to every coin; now, let's talk about the considerations to keep in mind.
Cons:
Long Waiting Period: As you are buying a brand new development, it requires time to build from scratch before you can even move in. Not forgetting that there might be potential hiccups such as construction delays or any unforeseen circumstances, e.g. Covid delay in 2021.
Higher Costs: New condos often come with a premium price tag compared to resale units. You will be paying for brand new amenities and branded kitchen appliances such as a refrigerator, cooking hood, oven, etc., which are included in the unit, as well as the modern design and efficient layout. Protip: you can check with the Developer on what the things included and excluded
Non-Mature Estate: Buying into a new development means you'll be moving into a neighbourhood that may still be undergoing development where the estate is not mature yet. New MRT lines are still in progress, lack of nearby coffee shops, etc. Consider whether the surrounding infrastructure and amenities will meet your current and future needs. Would you be able to wait that long?
Resale
Pros:
Ready to Move In: Unlike new condos, resale units are usually ready for immediate occupancy or immediate rent out. This means you can move in sooner without having to wait for the completion of construction. Resale units are also generally much larger, which translates to a lower PSF versus a new one.
Location: Resale condos are often situated in already well-established neighbourhoods with mature amenities such as schools, parks, shopping malls, and public transportation options. Bonus if you require immediate convenience and accessibility.
Less Surprises: When you purchase a resale condo, what you see is what you get. You will not need to rely on floor plans or 3D renderings to visualize your dream home; you can physically inspect the unit at any time and its surroundings before making a decision.
Renovation Savings: You have the flexibility to choose a well-renovated unit, thus saving on potential renovation costs or even reducing the cost to a minimum. You can then pass on these savings to your furniture or kitchen appliances :P
Cons:
Age and Condition: It may require more maintenance and renovation work than new developments. Maintenance fee differs based on the size of the condo and the amenities.
Limited Amenities: Depending on the age of the condo, resale units may not offer the same level of amenities and facilities as newer developments. Consider whether access to amenities such as swimming pools, gym, and function rooms is vital to you.
If you are buying for investment, a new condo will be more suitable as it has the potential for capital appreciation, and the units are brand new. On the other hand, if you need to move in immediately and do not like surprises, especially if the neighbouring amenities are important to you, a resale condo may be more suitable.
Regardless, every individual has their own needs along with personal preferences and current financial situation. Hence, it ultimately boils down to one's unique situation.
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About The Author
Giselle has eight years of diverse industry experience, bringing a fresh perspective to the real estate landscape whether you're a first-time homebuyer, a seasoned investor, or looking to sell your property. As an excited first-time homeowner, she is also planning her property portfolio. She is also a dog mom of 2 adorable dogs (Shiba Inu and a Rottweiler mongrel mix), a theme park lover, a soft spot for Mandapop, and a carbs lover. For non-obligation consultation, feel free to reach out at 8298 5005 or hit her up at hi.gisellelow@gmail.com