Which has a faster growth rate, resale units or new launches?

When comparing the growth rates of resale units and new launch properties in the Singapore real estate market, the data suggests that both types of properties have their own advantages and potential for growth.

New Launch Properties

• New launch properties often offer faster capital appreciation, especially for early buyers who purchase during pre-launch phases. On average, early buyers of new launches may see returns around 16% upon selling after the Temporary Occupation Permit (TOP) is issued, although returns can vary by project and market conditions.
• New launches can benefit from developer discounts, a broader selection of units, and modern amenities, which can attract both buyers and tenants.

Resale Properties

• Resale properties have shown stable and consistent returns over time. On average, resale-to-resale transactions yield around 10% profitability, and in some cases, the average rate of return for resale properties can be significantly higher, especially when held for a longer period. For example, resale properties sold after an average holding period of 7.4 years have shown average gains of 17.44%.
• In recent times, resale condos have seen higher growth on a price per square foot basis, helping to narrow the gap with new launch counterparts.

Conclusion

While new launch properties can offer attractive returns due to early bird discounts and modern amenities, resale properties have demonstrated consistent and sometimes higher growth rates over the long term. The choice between a resale unit and a new launch ultimately depends on the investor's financial goals, investment horizon, and personal preferences.