If you are taking your next step looking to upgrade from your current place, you would probably be torn between going for a brand new launch vs a older resale just as all my clients did.
Some of my clients prefer staying in a brand new house where they are the first owners with minimal renovation needed and also get to enjoy the latest and newest facilities.
I also have clients who prefer a resale condo where they can move in immediately, pay a relatively lower $psf, get a bigger space and don’t mind paying additional for renovation .
From my perspective , both new launch and resale have its pros and cons but what matters more is your personal goal and objective. Questions like how long to you plan to stay? How much capital gain are you looking at? Do you plan to pass down to your children for legacy purposes or renting it out to fund your future retirement, etc
Other than all these considerations in mind, lets dive right in and look at some of the more prominent differences .
One of the best advantages of buying new is you get to enjoy a 1 year warrenty defects free liability period even if you are already getting everything brand new. Buying a resale is pretty tricky sometimes if you are not a experienced buyer where most buyers aren’t. There are multiple things to check from ceiling leak, toilet pipping, pest, neighbors, history of the unit, potential issues seller trying to conceal, etc. Do note caveat emptor applies in Singapore which means what you see is what you get and seller are not be liable after selling their homes to you. I strongly encourage you to engage an experienced buyer agent to represent you, the best part is its free. If you are someone who likes minimum hassle or headache unless you don mind spending another $80-$100k on renovation for a older resale, new launch might sound like a better option for you.
Performances of new vs resale
Case study 1.
One of the biggest advantages of getting a new launch is first mover advantage, there is always a TOP effect where potential investors or home buyers can enjoy for waiting 3-4 years to get their keys. Actually condo performs and behaves quite similarly to a BTO where a buyer is almost certain there will always be a profit gain at the end of MOP when they sell. A investor from NV residence if he/she manage to sold it off after enjoying the TOP effect gain of 28% and reinvest the money to buy coco palms, he/she would have enjoy another 27% gain in capital appreciation.
Case study 2.
If a potential investors/buyer or owner of the Queens have exited at 2014 and bought Commonwealth tower, he/she would have similarly enjoy the TOP effect and make a capital gain of 10%
Case study 3.
Another comparison study of Panorama in Ang mo kio and a freehold Meadows@pierce in terms of capital appreciation. If the homeowner of Meadows@pierce have exited at 2014 and bought intPanorama, he/she would have enjoy another round of capital gain of 14% in gross profit.
If you are astounded by what is happening or how a typical condo performs over time, go to this next article where it analyses How a typical condo in singapore performs to have a better understanding before making your next purchases.
In conclusion, if you have immediate needs and require to move to a new place immediately, resale would be the only option. But if you are a investor or young couple looking for capital gain to build your retirement nest, do take advantage of the TOP effect of new launch compare to a resale development which might have already reach its stagnant stage.
Speak to us if you would like an non obligatory discussion on your next move