New Launch Vs Resale Condo
Whether it’s better to buy a newly launched condominium or a resale unit has long been a topic of heated debate. But it all boils down to your individual needs and perspectives when you’re choosing and purchasing a property.
To explore the price differences between a new launch condo and a resale condo unit, we’ll look at some data from a few case studies to better understand one of the biggest considerations among property buyers: resale value.
Alex Residences (New Launch, TOP 2019) Vs Ascentia Sky (Resale, TOP 2013)
Alex Residences was launched at $1698 psf
Resale units at Ascentia Sky was selling at $1540 psf
To date, if the buyer had bought a unit at the newly launched Alex Residence, their unit would have appreciated in value, however, if he had purchased a resale unit at Ascentia Sky, his property would instead be losing value.
Gem Residences (New Launch, TOP 2020) Vs Trevista (Resale,TOP 2011)
Gem Residences was launched at $1428 psf
Resale units at Trevista was selling at $1353 psf
Property buyers who had bought a new launch unit at Gem Residences would now enjoy a value appreciation of 19.46%, but those who had bought a resale unit at Trevista however, would see an appreciation of only 4.34%. As a savvy investor/home owner, what would you have purchased?
Look at the following few cases as well
Park Colonial (New launch, TOP 2022) Vs 8@Woodleigh (Resale, TOP 2012)
Stirling Residences (New Launch, TOP 2022) Vs Queens (Resale, Resale, 2002)
As we can see from the data shown in our three case studies above, along with past transaction trends, it is clear that home owners and property investors who chose to buy units first-hand from property developers have rarely experienced a resale transaction that made a loss.
From an investor’s standpoint, it makes far more sense to buy brand new units than to buy resale units. For those who are looking just to buy a home, would you prefer one that would appreciate in value over the years as you live in it?
Of course, while new launches are our go-to recommendation for investors, there are various other factors for homeowners to consider when buying property, such as proximity to schools, personal needs like distance from parents’ homes, MRT stations, unit size, among many others.
For those who need to move into a new home ASAP, you can choose to purchase a resale unit, or you can look at balance developer units in condos that will TOP in 2020. 2020 has many more new launches in the pipeline, and an abundance of resale units in the open market. It’s definitely a buyer’s market, where buyers will be spoilt for choice.
Contact me to find out which condo developments will reach TOP this year! Read my other posts for more real estate tips on buying and selling property.
If you’re ever in need of a third party opinion from a qualified, experienced real estate consultant, feel free to give me a call.
Read on in my other blogs for more tips on buying and selling a property.