It is hard to disagree with anyone who says that new things are always better than the old; but can you speak the same for properties in our little red dot (Singapore)?
Let us find out more!
Factor #1: Investment?
With thousands of considerations amongst the many choices you have to choose from, the enticing show units or charming real estate salesperson could have easily influenced you to make a decision that is not your fundamental reason for viewing housing units.
For purchases to invest, you obviously would want to be profiting.
On that end, history has proven time and again that New launches will always outbid Resale unit on the profit margin end.
Ideally speaking, you want to buy a unit that you can both choose to stay comfortably yourself, but also provide you with an option to profit so you can enjoy both side of the best world.
There is no denying that this is possible, but with deterring factors and cooling measures from the government to prevent the rich from owning all the real estate in Singapore, you get the option of being part of the huge pie!
Let us first do a simple comparison for a few projects, indicating the general patterns for the 2 different types over the past few years.
GEM RESIDENCES VS TREVISTA
As the saying goes, the numbers do not lie, what we do see here are 2 projects used to compare the difference in appreciation between a new launch and resale within the same area. It is very evident from the graph itself that while a new launch project (Gem Residences) remains on a steady upwards flow, a project in the market for some time (Trevista) have maintained at a steady line with not much appreciation.
Let us take a look at another example.
COMMONWEALTH TOWERS VS QUEENS
As two examples might not be enough for some. Let us take a look at another.
SKYVUE VS RAFFLESIA CONDO
Referencing what was mentioned above to combine with the graphical report of transactions, where new launches are always on the rise in comparison to the almost flat line of resale condominiums, the new launch is undoubtedly the best choice for purchase should the main factor be for investment when compared to resale units.
Factor #2: Own Stay?
“I do not require the property to make me more money. I have more than enough.”
While most probably will not complain about having more money (I know I will not!), there are some who have reasons to not bother about the appreciation of their homes and just want whatever suits their likings best to call it their home.
On this end, we explore a few key sub factors; location, amenities, size, comfort.
Location; where do I want my home?
It is not strange to hear common statements from everyone that they have stayed in a certain area or place for their whole life, and asking them to leave that area to another equates to a forced migration they will be extremely repulsive towards.
Of course, aside from familiarity, which area would suit you the best? Perhaps one that is near to the school your children is attending, or would it be better to stay somewhere near to your workplace?
Surely it will not make sense to purchase a unit in the extreme west when the place you frequent is all in the extreme east.
For the location, resale will provide way more flexibility than what a new launch can provide you. Wherever a new launch project is built, it is almost at no doubt that there are resale units nearby the same area. In contrast, where a resale unit is at, may not have a new launch project built, which is where the flexibility comes in.
Amenities; what do I want near my home?
Let me present a simple question for this point on amenities. Will facilities, shops and convenience be provided around areas that already have residents? Or would they simply get all of it ready and just wait for a few more years while people are building up their new condominiums?
Truth be told, most ideal locations with popular amenities in demand have long been snatched up for housing purposes, in other words, they are land that is already occupied.
So, there we have it, an additional benefit of resale units should the main consideration be for own stay.
Size; how big do I want my home?
To make the most accurate analysis, we have to compare only units of the similar type; 1-bedroom to 1-bedroom, 2 to 2 and thereafter.
In general, the units in older developments are bigger than those of the new launches. Common complaints about new Build-to-Order (BTOs) HDB flats being way smaller in size than those from the earlier days is big market sentiment.
Then again, this article’s main focus is on new launch condominiums against resale condominiums. On this end itself, it is also a common trend as developers of recent years have tried to squeeze more units in the purchased plots of land so as to maximise profit, much different from the developing years where land is more available.
Comparing apple to apple, resale stands a huge advantage in terms of size to new launches.
Credits: The Straits Times.
“Is this what you want?”
Comfort; why is this place called home?
When purchasing a property for own stay, there is no doubt that one will always choose a unit that they can best call home.
Credits: The Straits Times
“The kitchen is too small. The balcony is not windy. This is a low level. I just don’t feel it!”
Disclaimer: Quote above is not directed to demean or insult any groups or individuals.
One year into this industry, almost every buyer that I have met will start off with a complaint about the units I have handled, always hiding or reserving the positive comments about the unit itself.
The complaints might seem stressful to most, but it is something that real estate agents handle every day and am very competent in handling due to how common it is. It is not a showcase of stereotypes about our locals, but how much people value a place that they call home to be so critical about it.
Linking this back to the topic on new launch or resale as priority choice in terms of comfort, there is no doubt that resale will always score higher points.
For new launches, there is only a show unit with a beautiful representation of how your unit could be like, but the rest is up to your own imagination. For resale units however, you get to directly see the exact condition of the unit, what kind of view you will be getting and also, a little bit of a stretch, how comfortable you will be with the neighbors around you.
Conclusion: Are you more aware of what to choose now?
To mark a solid conclusion, let me present a famous theory by a world-renowned psychologist; Abraham Harold Maslow.
Credits: SimplyPsychology.
For readers who are not aware, this table above is what most call the Maslow’s Hierarchy of Needs, with those at the bottom layer being the most essential needs, and the priority reduces moving up the triangle.
As you can see, shelter is one of the key factors for our needs. What else could best represent shelter other than housing units, a huge part of all our lives?
Catering is the best fit for each individual, one can never immediately put a blanket to say that either choice is the immediate best for everyone.
To put it simply: Consider what is best for yourself, and what do you actually want?
From there, follow your heart and make the decision to the next key point of your life.
are of what to choose now?
To mark a solid conclusion, let me present a famous theory by a world-renowned psychologist; Abraham Harold Maslow.
Credits: SimplyPsychology.
For readers who are not aware, this table above is what most call the Maslow’s Hierarchy of Needs, with those at the bottom layer being the most essential needs, and the priority reduces moving up the triangle.
As you can see, shelter is one of the key factors for our needs. What else could best represent shelter other than housing units, a huge part of all our lives?
Catering is the best fit for each individual, one can never immediately put a blanket to say that either choice is the immediate best for everyone.
To put it simply: Consider what is best for yourself, and what do you actually want?
From there, follow your heart and make the decision to the next key point of your life.
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