Buying a condo is an important financial decision and can significantly impact your living experience. If you’re in the market for a condo in Singapore, the big question is, new launch or resale?
Whether you are buying a brand-spankin’ new condo or a resale condo depends on several factors. Let’s look at the pros and cons of each.
New Launch Condo
In case you didn’t know, a new launch condo refers to a property that is sold before or during its construction phase, usually directly from the developer. You’ll rely on the show flat, brochures, and floor plans to imagine how your new home will look.
Pros
Modern Features and Facilities – New launch condos like The Elta come equipped with state-of-the-art designs and facilities. Expect features like smart home technology, energy-efficient systems, and contemporary layouts. Developers often incorporate the latest lifestyle trends, such as co-working spaces for those who work from home, green features, and infinity pools.
Potential Capital Appreciation – If you buy the property before it’s completed, you’ll often be purchasing at a lower price. Nearing the TOP date, the property prices often increase, offering you significant capital appreciation, especially in the areas where more development is expected. For example, The Elta’s price is likely to go up when the Jurong Region MRT Line and the Cross Island Line also near completion.
Lower Maintenance Costs – As new launch condos come with brand-new fixtures, appliances, and facilities, maintenance costs will be minimal in the initial years.
Older resale properties often require maintenance in communal areas or within each unit which might make a dent in your wallet. For example, replacing pool tiles or resurfacing asphalt roads often cost residents in the thousands, depending on the size of the development.
Staggered Payment Plans – New launch condos have staggered payment plans that allow you to pay in phases. Typically, you pay upon purchase, then an amount every 6 months or so. Resale flats will require a lump sum payment.
Cons
Waiting Time – When you purchase a new launch condo, you’ll often have to wait three to five years before collecting your keys and moving in. If you’re purchasing from investment, that’s a few years of rental income you’ll be sacrificing. If you’re purchasing to move in, you also won’t be able to enjoy your new home for a while.
Market Uncertainty – Even though new launch condos are expected to appreciate in value once completed, this isn’t a guarantee. If there’s an oversupply of units in a certain area, this might affect the capital appreciation of the property.
Resale Condo
A resale property refers to one that has already been completed and previously owned. You can inspect the property, check out the surroundings, and see first-hand what it would be like living there.
Pros
Immediately Available – Unlike new launches, resale properties are ready for occupation or rental income generation immediately after purchase. This is especially useful if you have already sold your current home and want a place to move into immediately. For investors, once you purchase the property, you can immediately start renting it out and generating income.
Negotiating Prices – Since you’ll be buying the property from the current owner which usually is an individual, you can negotiate a price, especially in a buyer’s market. If the owner is keen to sell or if it is currently a buyer’s market, you might be able to land a good deal.
Floor Space – In land-scarce Singapore, newer properties are often smaller than older ones. Modern properties focus on maximizing space efficiency and are likely to have smaller floor spaces.
Cons
Potential Maintenance Issues – Depending on the age of the condo, there might be significant wear and tear. Your unit might require renovation or refurbishment like the fixtures, plumbing, and electrical systems. Communal spaces like roads, pools, and fixtures might also require fixing, and the costs will be passed down to residents.
Lower Capital Appreciation – Resale properties, especially in mature neighborhoods, often see slower price growth, making them less attractive to investors who want to see greater returns.
Higher Upfront Payment – Once you’ve purchased your resale property, you’ll need to come up with a lump sum payment and in Singapore, condos cost a pretty penny! New launch condos often have staggered payment plans which means you’ll have less financial burden once you’ve decided on your purchase.
Final Thoughts
The Elta is an exciting new launch condo located along Clementi Avenue 1, a short walk from Clementi MRT station. Its proximity to the MRT, bus interchange, and the town centre make it an ideal choice if you prioritize convenience and accessibility.
Come visit the Elta show flat or check out the floor plans. We look forward to welcoming you into the neighbourhood!