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Resale Condo vs. New Launch Condo


In every aspect of our daily life, we are presented with various choices. Of course, these range from small decisions – coffee or tea, caifan or chicken rice – to larger decisions, like career choices, family decisions, and of course, housing options. In fact, for most upgraders looking to invest in a private property, the most common question is: new launch or resale? Today, we’re breaking down the different pros and cons, and which one is best for you.


Entry Price

Let’s start with the most important factor – affordability. If you thought new launches were expensive, it’s time to break that assumption now. The new launch stage is actually the most affordable stage, with the absolute lowest price. That’s not even counting the numerous developer discounts and early-bird prices developers will use to entice buyers. In fact, new launches tend to be cheapest at launch, with prices slowly increasing until the development reaches the Temporary Occupation Permit (TOP) stage.


Resale condos, on the other hand, tend to sell for a higher price, due to owners wanting to sell at a profit. Of course, some resale condos can be bought at a steal, but generally, owners will tend to price their units higher as well, expecting buyers to negotiate down. One advantage of resale condos however, is that rental income tends to be more stable, with more data to work with.


Capital Gains

Everyone wants to buy low, sell high, and that’s usually the case for new launches. New launch condos provide a first-mover advantage, since you’re the first owner of the property, and stand to gain the most capital gain. As time goes by and prices go up further, you’re already gaining much more than any other new entrants who come in after the new launch stage. This means you’ll get to enjoy every investor’s dream – buying at the absolute lowest price, and selling at the highest price.


For resale condos, however, there’ll likely be less capital appreciation, since they’ve already passed the TOP stage. Typically, condos tend to be cheapest at new launch stage, rising all the way to TOP stage, before dropping slightly and remaining stagnant after that. This means resale condos might not be the best option for high capital gains.


Waiting Time

What’s the point of considering a resale condo then? Well, there’s many other factors that swing in favor of resale condos, beyond just price and capital gains. For example, resale condos are usually in move-in condition, meaning you can move in right after selling your previous property, with no long waiting time until TOP. Resale condos are also already built, allowing you to view the actual location and unit, decreasing the amount of potential unpleasant surprises – like a neighbouring building blocking your perfect view of the Singapore skyline! Of course, the most important factor in resale condos’ favor is rental – from Day 1, you can already start collecting rental yield. No need to wait ages!


Having said that, not all projects are made equal. Some new launches might not earn you the capital gains you’re looking for, and some resales might not be attractive for rental. That’s why it’s important to consult with experienced property professionals, like UnlockHome. We prepare detailed market analysis reports, so you can analyse the potential investment opportunities and capital gains, to make sure you’re making the best decisions. Head over to our website at www.unlockhm.com to find out more!

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