Apart from the question of whether a freehold or leasehold property is preferable, one of the most frequently asked questions among homebuyers is whether to purchase a new or resale condo in Singapore.
The advantages of purchasing a new condominium
1. Everything is completely new.
Perhaps the most alluring aspect of purchasing a new condo is that everything about the property is brand new, from the fixtures to the appliances, plumbing, and facilities. Thus, unlike when purchasing a resale property, you will not be responsible for repairing items damaged by the previous owner.
2. Less expensive
Unless a project has reached the end of its Temporary Occupation Permit (TOP), new condos are typically less expensive than resale condos, as developers frequently offer early bird discounts to entice potential buyers. This may take the form of price concessions, vouchers, or even the abatement of stamp duties. While you may find excellent deals on resale condos, keep in mind that some sellers will price their property higher in anticipation of price negotiations.
3. You have a greater selection of unit types to choose from
When you purchase a new launch condominium, you have the option of selecting a unit with a better view, closer proximity to amenities and parking, or on a higher floor. This option is also advantageous if you are purchasing with the intention of renting it out and are familiar with your buyer's profile.
4. Low-cost maintenance
A new launch condo includes brand-new cabinetry, fixtures, and appliances. If they fail or malfunction, developers are required to repair or replace them free of charge during the 12-month defect-free period.On the other hand, a resale condo has a higher risk of things breaking down, whether it's major plumbing issues, water seepage, or cracks — all of which can result in costly repairs.
The advantages of purchasing a resale condominium
1. You can immediately move in or rent out
The primary advantage of purchasing a resale condo is that you avoid the three- to six-year wait for completion. If you're in a hurry to relocate, a resale condo should be your first choice. A resale condo is also a better option if you intend to rent the unit or additional bedrooms, as you can immediately rent them out.
2. Rental income from resale condominiums is more predictable
In comparison to a new condo, a resale condo's rental income is much more predictable. By examining current and historical rental data on sites such as URA and Square Foot, you can get a sense of rental trends and determine whether the condo is a good investment.
3. You gain a better understanding of the product you're purchasing
For new condominium launches, you are essentially limited to the materials provided by developers, such as brochures and maps. While you could visit the showflat to get a better sense of the property, keep in mind that showflats are designed to entice you away — the actual unit may be quite different.
4. More spacious than newer condominiums
Finally, resale condos are typically larger than new construction condos.