Resale Condos Vs New Launch Condos 2022; An Ultimate Guide

Singapore New Launch Condo 2022

New Launch Condos – Many people in Singapore want to buy a condo that they can call their own. The decision to move from a HDB to a condo can be seen as a “defining moment” for many people. But there’s something you need to think about seriously before you can bask in this feeling of accomplishment.

New Launch Condo 2022 Singapore(1)

To realize your goals, you must decide whether to purchase a previously owned condo or one that has just been released on the market. The variety of options can be overwhelming for first-time homebuyers. But don’t worry; we have compiled a few considerations to assist you decide whether a resale condo or a new launch condo 2022 is the better fit for you.

A few factors to consider while choosing between a resale condo and new launch condo 2022 in Singapore

Time Factor: How Long Can You Wait?

One of the most glaring distinctions between new launch condos and resale condos is the length of time required to close on either option. The average period to buy a condo after its introduction is between three and five years. Sometimes, you will have to wait even longer like six years or more.

Condos for resale, in contrast, don’t need any work before they hit the market. After all, those who are interested in purchasing a condo that has been on the market for a while likely won’t have to wait long. The only line up in the resale condo’s immediate availability is likely the current owner’s search for a new place to live.

If you’re in a rush to find a new place to live, a condo that’s just been released might not be the best option.

Price Factor; how much can you afford?

It’s important to keep your budget in mind whenever you’re looking at a majorpurchase. This is especially true when the price of a newly released condo can be as much as 40percent higher than that of similarly located resale condos.

A new launch condo’s premium price can be attributed to a few different factors.

  1. Increases in the Price of Land

The condo’s new launch price may be higher than the selling price because of the higher land cost. The increased cost of land is ultimately passed on to homebuyers by the developer.

  1. The State of the Market

Keeping an eye on the movement of home prices is essential. If the real estate market is doing well, why wouldn’t the developer take the chance to charge more for a new condo than for a condo that has already been sold?

  1. Condo Tenure

The third consideration is tenure. The lease terms on brand-new condominium developments are typically longer. When the age of the condo is considered, new launch condos are equivalent to resale condos, if not better.

However, a 40% premium is not typical. New launch condos 2022 may provide incentives to attract buyers. If a developer has a unit on a lower floor, with an unpopular layout, they may discount it to attract buyers. To get your hands on these deals, you’ll need a lucky ballot number. Additionally, developers will sometimes market slow-selling units at reduced prices to encourage buyers to make an offer.

Investment Factor: Rental Yield vs Capital Appreciation

The investment aspect will be a crucial element for individuals planning to purchase a second home when choosing between a resale and new launch condo 2022. As we’ve already said, new condo launches usually have the same (or even higher) PSF (per square foot) prices as the resale condos nearby.

But there is something special about a new launch condo that makes it a good choice for an investment: One-time capital appreciation upon TOP. Resale condominiums, in contrast to new launches, rarely see price hikes. It’s not the norm, but that doesn’t mean it doesn’t happen.

Flexibility in choice

The resale condo market has an edge over the new launch market because of the choice factor, which allows buyers more freedom of choice.

If you’re looking for a highly sought-after property in a new condo development, you should know that getting your choice sometimes come down to luck. This is because new launch condos are sold using a voting mechanism. When it’s your turn, you can pick from whichever units are still available. This means that the likelihood of getting the unit you want is proportional to the number of votes cast.

In contrast, if you choose the resale condo route, you won’t have to stress over limited options. You are free to select any unit currently available on the market.

Repayment factor: upfront vs progressive payment

Buying a condo, especially a resale unit, is a major financial commitment.

In the case of a resale condo, the full purchase price is due at the time of purchase. Banks may finance up to 75% of the purchase price, thus a down payment of 25% (in cash or CPF) is required. Additional costs include the booking charge, stamp duty, and other applicable fees. Since one-quarter of the home’s value must be paid in cash or a certified public fund, this can be a significant out-of-pocket expense for any buyer.

New launch condo 2022 typically offers more flexible payment plans. You can choose between the Deferred Payment Scheme (DPS) and the Progressive Payment Scheme (PPS).

Both newly released condos and resale condos have their benefits and drawbacks. To help you choose the option that is most suited to your financial position, we have outlined five considerations for you to keep in mind when evaluating the two. However one thing goes both ways: selecting the optimal house loan programme remains the critical factor in this process.

Singapore Property Launches is Singapore’s go-to resource for information about new launch condos 2022 and upcoming developments. When it comes to Singapore’s newest condo developments, we at Singapore Property Launches exclusively deal with the most reputable investor sales representatives to provide you the lowest available prices.

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