For a lot of Singaporeans, shopping for your first house is each a ceremony of passage and a significant monetary milestone. However as costs shift and the housing panorama evolves, one query retains resurfacing—must you go for a spanking new condominium, or go for a well-located resale unit with fast occupancy?
This complete have a look at condominium worth traits compares each markets and helps first-time house patrons perceive what’s driving the present divide within the Singapore property market.
What’s Fuelling the Worth Divide?
The hole between new launch condominium costs and resale condominium costs isn’t nearly age. A number of forces are pulling the 2 markets in several instructions:
- Developer methods: Builders worth new launches with future appreciation in thoughts, typically beginning excessive and rising costs in phases.
- Building and land prices: Hovering materials prices and aggressive bids in Authorities Land Gross sales (GLS) have pushed up launch costs.
- Purchaser preferences: Many locals nonetheless affiliate new launches with status, smarter layouts, and upgraded amenities, driving demand regardless of larger prices.
- Coverage and planning: Cooling measures and Further Purchaser’s Stamp Duties have reshaped shopping for patterns and expectations.
In the meantime, the affect on the brand new and resale condominium market is obvious—new launches dominate headlines, however resale properties are quietly gaining floor due to lower cost per sq. foot (psf) charges and bigger layouts.
Worth Per Sq. Foot: What Are You Actually Paying For?
Current knowledge exhibits a widening hole in psf. New condominium costs common round $2,300 psf in central areas, whereas resale models hover nearer to $1,700 psf in the identical zones.
However right here’s the place nuance issues:
- New condos provide longer leaseholds and trendy facilities—however smaller unit sizes.
- Resale leasehold tasks typically sit on prime plots, are extra spacious, and have already got established transport hyperlinks.
- Consumers might discover that whereas new models are shinier, resale ones present higher worth per greenback—particularly for households prioritising area over status.
In case you’re utilizing a primary time house patrons information, be sure it consists of side-by-side comparisons of psf vs usable space. You would possibly discover that the shiny new unit is smaller than your present HDB flat.
The Emotional Attraction of New Launches
Why do patrons nonetheless gravitate towards new launches, even when the numbers don’t all the time add up?
- Modernity: Sensible properties, branded fittings, infinity swimming pools, and co-working areas.
- Progressive cost scheme: This construction permits patrons to pay in phases, which eases short-term monetary pressure.
- Longer tenure: Shopping for right into a contemporary 99-year and even freehold growth maximises possession longevity.
- Model fairness: Builders typically hype up the “unique” life-style—a strong draw for status-conscious patrons.
For a lot of, particularly these shopping for your first house, these options provide emotional reassurance that the premium is price it. Nevertheless it’s essential to steadiness pleasure with logic—particularly whenever you’re signing a 25-year mortgage.
The Hidden Prices Behind the Glamour
The true problem with new launches? The prices that don’t present up on brochures:
- Delayed gratification: Most new tasks take 3–4 years to finish. You’re paying right now’s worth for tomorrow’s house, which can or might not align with future market circumstances.
- Renovation dangers: Some patrons are dissatisfied by workmanship, prompting further spending post-handover.
- Holding prices: In case you’re already dwelling elsewhere or servicing one other mortgage, double monetary commitments could be draining.
Briefly, whereas new launch condominium costs embody bells and whistles, additionally they carry hidden commitments.
Resale Condos: The Underrated Contender
Whereas much less flashy, resale condominium costs have gotten more and more enticing. Right here’s why extra patrons are contemplating them:
- Transfer-in prepared: No want to attend years—you may lease it out or dwell in it instantly.
- Greater floorplans: Older condos typically provide higher space-to-price ratios.
- Established neighbourhoods: Resale models are usually positioned close to matured facilities like MRTs, faculties,and malls.
Savvy buyers know that whereas new launches might provide appreciation, resale models ship prompt utility and, in some instances, higher rental yield.
What About Leasehold Decay?
One concern amongst cautious patrons is the leasehold erosion in older resale models. Certainly, resale leasehold tasks previous the 30-year mark do see a dip in valuation.
However not all resale condos are ageing relics. Many are solely 10–20 years previous, that means they nonetheless have robust resale and rental worth, particularly if well-maintained and positioned close to key infrastructure.
It’s about weighing trade-offs. In case you’re planning to carry the property for five–10 years, a well-priced 70-year leasehold might nonetheless outperform a pricey new launch on ROI.
The place is the Worth Hole Narrowing?
The Singapore property market is just not uniform. Regional variations are blurring the value divide:
- Exterior Central Area (OCR): Right here, new launches are nonetheless comparatively inexpensive, which narrows the hole with resale models.
- Remainder of Central Area (RCR): Resale condos in city-fringe places are seeing worth bumps due to their proximity to CBD-lite hubs.
- Core Central Area (CCR): This stays the priciest, with resale models commanding excessive costs,particularly these in freehold developments.
For first time house patrons, wanting in RCR and OCR might provide the most effective center floor between worth, area, and accessibility.
How Curiosity Charges Are Shaping Rental Selections
With rates of interest lastly easing, many are eyeing the property market as soon as once more. Decrease house mortgage financial institution rates of interest and aggressive property mortgage rates of interest are boosting affordability. However don’t get complacent—your Singapore house mortgage nonetheless wants cautious planning.
In case you’re contemplating a condominium buy in 2025:
- Get an IPA mortgage authorized early—it exhibits your funds and boosts your negotiation energy.
- Use the speed cuts to your benefit, however keep away from overleveraging.
- Keep in mind that even with higher charges, mortgage for property buy is a long-term dedication—plan for rising prices, not simply entry prices.
Closing Ideas
Selecting between a brand new launch and a resale condominium within the Singapore property market isn’t an easy choice. It relies upon not solely on funds and life-style preferences but in addition on the way you view the long-term worth of your buy. Whether or not you’re aiming to your dream life-style or a secure funding, understanding condominium worth traits and aligning them together with your wants will be certain that your property journey begins on stable floor.
Whichever route you select, comply with this golden rule: Don’t let hype cloud your judgement. Use knowledge, seek the advice of specialists and all the time align the property together with your long-term monetary objectives. Let this information be your anchor—not simply one other want listing.
Writer Bio:
Paul Grewal is a seasoned house mortgage advisor primarily based in Singapore, famend for his strategic finesse and deep market insights. With over a decade of expertise, he specialises in serving to purchasers navigate the complexities of property funding and refinancing house loans. Paul’s strategy is very personalised, making certain that his purchasers safe the very best phrases and mortgage mortgage rates of interest in Singapore tailor-made to their distinctive monetary conditions. An avid author, he contributes recurrently to main monetary publications, providing recommendation on sensible property funding and monetary planning. His workshops on monetary literacy are extremely wanted, reflecting his dedication to empowering owners in Singapore. The weblog offers with condominium worth traits in Singapore, providing an in depth comparability between new launch condominium costs and resale condominium costs to assist patrons make knowledgeable property choices.
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