New Launch vs Resale Condos: A Comprehensive Comparison
Investing in a condominium is a significant decision that requires careful consideration. Among the many factors to weigh, deciding between a new launch condo like Union Square Residences and a resale condo is one of the most important. Both options have their unique advantages and potential drawbacks, which vary depending on your priorities, budget, and timeline. This article delves into the key differences to help you make an informed choice.
Price Point
New Launch Condos: Generally, new launch condos are priced lower during the initial launch phase, also known as the “early bird” phase. Developers often offer discounts and promotions to attract buyers. However, the final cost may increase due to additional features, such as optional upgrades or stamp duty fees. In the most recent launch The Orie by CDL, average price on launch day was $2,704 psf. It may be a good indicative price for upcoming Union Square Residences as both have similar location attributes.
Resale Condos: Resale condos tend to have higher upfront costs, as their prices reflect current market conditions. However, there is often room for negotiation, especially if the seller is motivated. Additionally, buyers may save on costs for renovations or upgrades if the unit is well-maintained. On the other hand, condo resale prices fall for the first time in 10 months in Oct 2024.
Condition and Customization
New Launch Condos: These units come in pristine condition, with modern finishes and up-to-date designs. Buyers have the opportunity to customize the unit, such as choosing floor tiles or cabinetry, depending on the developer’s options. The downside is the “what you see is not what you get” factor, as buyers must rely on brochures, show flats, or artist impressions.
Resale Condos: With resale units, buyers can inspect the actual property and assess its condition before committing. However, older condos may require renovations, which can increase costs. On the flip side, buyers can also enjoy unique layouts or features not commonly available in newer developments.
Wait Time
New Launch Condos: One of the biggest drawbacks of new launch condos is the waiting period. Buyers typically need to wait 2 to 5 years for the project to be completed, during which they’ll need alternative housing arrangements. Union Square Residences key collection or TOP, is expected to be in 2029.
Resale Condos: Resale units are move-in ready, making them ideal for buyers who need immediate housing. This also means buyers can start generating rental income right away if they are purchasing for investment purposes.
Location and Development
New Launch Condos: These are often built in up-and-coming areas with future development potential. While this can lead to price appreciation over time, the surrounding infrastructure, such as transportation or amenities, may still be underdeveloped at the time of purchase. This is the case for Union Square Residences as Tampines North MRT Station is still undergoing construction.
Resale Condos: Resale condos are usually situated in mature neighborhoods with established infrastructure. This makes them appealing to buyers who prioritize convenience and accessibility.
Facilities and Amenities
New Launch Condos: Modern facilities, such as co-working spaces, smart home integrations, and eco-friendly features, are common in new developments. These cater to contemporary lifestyles and may add long-term value.
Resale Condos: While older developments may lack cutting-edge facilities, they often have larger unit sizes and more spacious common areas compared to newer projects.
Potential for Appreciation
New Launch Condos: New launches are purchased at today’s prices, with the potential for appreciation as the property nears completion and the surrounding area develops. However, market conditions can impact this significantly.
Resale Condos: While resale condos may have less potential for rapid appreciation, they offer a more stable and predictable valuation. Historical pricing trends can help buyers gauge future performance.
A study done by stackedhomes showed Returns based on the type of transaction for those that bought and sold between September 2018 – 2022. The most profitable returns of close to 15% made up of those who bought new launch and sell it as subsale, as well as those who bought resale and sold it as resale.
Financing and Payment Schemes
New Launch Condos: Developers often offer progressive payment schemes, where payments are staggered based on construction milestones. This makes it easier for buyers to manage finances over time.
Resale Condos: Resale units require full payment upon completion of the transaction, which may necessitate a larger upfront financial commitment.
Conclusion
Choosing between a new launch and a resale condo depends on your individual needs and priorities. If you value modern designs, potential appreciation, and don’t mind waiting, a new launch condo like Union Square Residencess might be ideal. On the other hand, if you prefer immediate availability, established locations, and a clear understanding of what you’re buying, a resale condo could be the better option.
Regardless of your choice, conducting thorough research and consulting with real estate professionals is essential to making a sound investment decision.
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