A new launch condo purchase is defined as buying that is not completed or buying off-plan (link https://en.wikipedia.org/wiki/Off-plan_property). If you’re in the market looking for a private property, here are some reasons to consider buying a new launch condominium versus a resale property.
Wide availability of units
Assuming you’ve decided on a development you want to buy, you literally have at your fingertips hundreds of units available for sale. No longer do you target a development only to realize that there are no 4 bedroom units left for sale. If you step into a showflat during the preview, you usually have the luxury of choice on your preferred type of unit. Remember that you need to get there early!
Brand new unit
Never underestimate the condition of a property in enhancing or diminishing its livability. With a new launch condominium, you are assured of the unit not having been used by another family. The paint on the walls will be brand new, there will be no chipped tiles neither will there be pen or pencil markings on the wall.
At the same time, you can customize the brand-new unit to your liking. You won’t need to knock out the in-built cabinet or wardrobe that a previous owner installed, and you can install a raised floor if that’s what you fancy.
You’ll also be saving on maintenance costs that come with wear-and-tear over the years.
Capital appreciation
Much has been said about the capital appreciation potential of new launch vs resale properties. One can be sure that for a new launch unit, the price that you as the buyer will be paying will ensure the developer earns a profit.
For example, if the land and construction cost for a developer amounts to S$1000 psf, they may sell it to a buyer at S$1,300 psf, in turn earning S$300 of profit. If you as a buyer wants to sell the house subsequently, you want to sell it at a higher price of for example S$1,600. In this case, the buyer of your property will have to, in a sense, pay for the profit margins of the developer and you as the existing owner.
Perks provided by developer
For new condominiums, the developer usually offers perks to buyers. Some perks include services such as free shuttle bus rides to the MRT station e.g. Liliydale condominium, HillV2. Other perks such as at Grandeur Park include wellness facilities such as one year free club membership for classes like yoga, aerobics, violin, swimming, cooking, tennis etc.
