New Launch Vs Resale Property in Singapore
Which One to Choose? Compare the Difference Now !!
The condominium market is currently the most popular form of real estate in Singapore. People that are looking to get on the property ladder, purchase condominium because of their cheap and affordable prices in comparison to free standing buildings that require ownership of land. There are two forms of property that potential homeowners can purchase, this is either new property launches or resale units . Each form has their own benefits and downfalls. It’s important to understand what to expect from each form of property before setting out to purchase a condominium.
Why Buy New Property Launches ??
Purchasing a newly built property is the most popular option for budding homeowners. One of the main reasons why is because investors will be able to set up payment plans where they can pay off the balance of the condo over the course of time through instalments according to the construction progress. This is also known as Normal Progressive Scheme. Payment will be based on each stages of completion. This means that buyers can spread out the payment of their house, rather than getting a housing loan (which is usually up to 80 percent of the unit purchase price) from the start. Which is what one would have to do if they were to purchase a resale property. In this case, buyer will need to secure a 80% loan from the bank immediately. Or worst still, if they fall under the 60% loan criteria, they would have to forked out 40% upfront.
Without a doubt the primary advantage of buying a new launch property in Singapore is that the development will almost certainly be state of the art and include with BCA GREEN MARK AWARD. Most of the new buildings have been designed by some of the world’s best architects and look very pleasing to the eye. The new developments will also contain all of the most up-to-date technology facilities, ensuring that the residents are getting the absolute maximum out of their unit. New launches also offer better pricing & have a “first bite of the cherry” as buyers will be able to enjoy great savings such as early bird discounts, rebates and also selection of choice units during the VVIP Preview before it is official launch to the open public.
Resale property isn’t as popular as new launch property. This is because of the 16 percent revised seller’s stamp duty that was introduced in January 2011. Since this was introduced the amount of resale buyers has drastically dropped. The reason why many people decide not to purchase resale property is because if they buy a condominium in a new project by the time the development is completed/ ready in (3-4 years) time). They pay little or no seller’s stamp duty if they wish to sell off the property.
There are however some advantages of purchasing a house in the resale market. Older developments are known for offering larger units than the new developments. This is because of the recent trend with the developers to make everything smaller to make it more affordable. However, this has had a negative effect on buying a resale unit in the area as resale apartments tends to be larger resulting a higher quantum due to the size.
This however can make a resale housing a better option for people that are looking to purchase a bigger condo unit and with immediate occupancy. People that want to purchase resale are likely to find bargains, it can however take a lot of time to find a seller that is willing to accept a low price.
Its also worth thinking about the 3 different tiers of condominium in Singapore. these are the mass market, mid market and luxury market. Each development that is built in Singapore will fit into one of these categories, whether a new project or a resale property. And prices between each of them vary quite drastically.
The mass market will cater to most buyers or HDB upgraders. These developments are usually found on the suburban areas and much affordable in comparison to the other tiers. A condo under the mass market property segment however is perfect for buyers looking into hopping onto the property ladder or for new investors that are interested in purchasing their first real estate investment. Typical features of a mass market condo includes swimming pools, clubhouse, gymnasium, beautiful landscaping, 24hrs security etc…
The mid market segment properties are usually situated on the city fringe. The mid market properties are perfect for professional people or seasoned investors. They already know what they wanted and just looking for the right properties to purchase.
The luxury segment condominiums in Singapore are usually in the central region or located in a exclusive address. Mostly sought by the most discerning or wealthy buyers looking at not just the price tag alone. But quality and exclusivity of the product eg. private home lift, yacht docking, scenic views, rarity of the product etc…