New launch vs resale condo in Singapore: how to decide

What "new launch" and "resale" actually mean

A new launch (or "new sale") condo is a unit bought directly in a project that is newly released by its developer, usually still under construction or yet to be built. You are buying off a floor plan and a showflat, and you wait for the project to be completed.

A resale condo is a completed unit bought from its current owner on the open market. You can view the actual unit, and you can typically move in or rent it out shortly after the purchase completes.

Both are private property and follow the same broad rules on eligibility, stamp duties and loans. The differences are in timing, pricing and experience.

Price and the "new launch premium"

New launches are usually priced higher per square foot than comparable resale units in the same area. You are paying for a brand-new building, the latest layouts and facilities, and - for leasehold projects - a fresh 99-year lease. Developers also price in their land, construction and marketing costs.

Resale units in an established development often have a lower headline price per square foot, and the price is set by a willing buyer and seller rather than a developer's price list. Whether a new launch premium is "worth it" depends on the location, the project and the wider market - there is no universal answer.

Timing: when can you actually use the home?

This is the biggest practical difference.

• A new launch is typically completed - reaching its Temporary Occupation Permit, or TOP - a few years after launch. You wait; you cannot move in or collect rent until then.
• A resale unit is already built. After the purchase completes, you can usually move in or lease it out within weeks.

If you need a home now, or you are counting on rental income soon, resale removes the wait. If you can plan around a multi-year timeline, a new launch may suit you.

Cash flow and payment

New launches under construction are usually paid for under the Progressive Payment Scheme - you pay in stages as the building reaches construction milestones, so your loan is drawn down in stages too, and your monthly instalments start small and rise over time.

A resale purchase is paid in a more compressed way: deposit, then the balance - with your loan fully drawn down - on completion. Your full monthly instalment begins soon after.

Condition, choice and customisation

• New launch: everything is brand new - fittings, appliances, facilities - and you start with a full fresh lease. You generally choose from available stacks and floors while units last. You cannot, however, see the finished product before you commit.
• Resale: you inspect the actual unit, the actual view, the actual renovation and the neighbouring blocks. The trade-off is age - the building, the lease and the fittings are older, and you may want to budget for renovation.

Financing and stamp duty

Loan limits, the cash and CPF rules, and the stamp duties payable are broadly the same for both routes - they depend on your residency status and how many properties you already own, not on whether the unit is new or resale. Buyer's Stamp Duty, and Additional Buyer's Stamp Duty where it applies, are payable in both cases. Confirm the exact stamp duty and loan-to-value figures with IRAS and your banker before you budget.

Which should you choose?

A rough way to decide:

• Lean to a new launch if you can wait for completion, you want a brand-new home with a fresh lease, and you are comfortable buying off a plan.
• Lean to resale if you need to move in or rent out soon, you want to see exactly what you are buying, and a lower entry price per square foot matters more to you than newness.

Neither is "better" in the abstract - the right answer depends on your timeline, your cash flow and the specific units available in the area you want.