Is buying a new launch or resale better for a first-time buyer

For a first-time buyer in Singapore, the decision between a new launch and a resale condo depends on several factors, including your financial situation, immediate housing needs, and long-term investment goals.

New Launch Condos

• Higher Initial Cost: New launch condos are often priced higher than resale condos, sometimes up to 40% more on a per-square-foot basis. However, they offer the advantage of lower maintenance costs since they are brand new.
• Potential for Capital Gains: New launch condos can provide stronger capital gain upside due to their higher valuation by banks and the potential for price appreciation in the early stages of the development.
• Waiting Period: You will need to wait for the construction to be completed, which can take several years. During this time, you may need to rent another place, adding to your overall costs.
• Modern Amenities: New launch condos typically come with modern amenities and newer building standards, which can be a significant advantage.

Resale Condos

• Immediate Occupancy: Resale condos are ready for immediate occupancy, which means you can move in right away and avoid rental costs while waiting for a new launch to be completed.
• Lower Initial Cost: Resale condos are generally cheaper on a per-square-foot basis compared to new launches.
• Established Neighborhood: Resale condos are often located in established neighborhoods with known amenities and transport links.
• Performance: While the difference is slim, resale condos have shown slightly better performance in terms of gains over a five-year period, with 91% of buyers seeing gains compared to 89.8% for new launches.

Considerations for First-Time Buyers

• If you need a place to live immediately, a resale condo might be more practical.
• If you are looking for a long-term investment and can afford the higher initial cost and potential rental expenses while waiting for the new launch to be completed, a new launch condo could be a better option.
• Consider your financial situation and whether you can handle the Additional Buyer's Stamp Duty (ABSD) and other costs associated with buying a new launch condo.

Ultimately, the decision should be based on your specific needs, financial capabilities, and what you prioritize – immediate housing, lower maintenance costs, or potential long-term gains. It is advisable to consult with a real estate agent or financial advisor to make an informed decision.