Selling a new launch before completion: the sub-sale

What a sub-sale is

When you buy a new launch off the plan, the project is built over several years. A sub-sale is when you - the original buyer - sell that unit to someone else before the project is completed and before you have taken legal possession. The new buyer steps into your shoes and takes the unit through to completion.

Why owners consider it

• Circumstances change. Plans, finances or family situations shift over a multi-year build.
• The unit is no longer needed. A buyer who intended to move in, or to hold the unit, may find the plan no longer fits.

A sub-sale is, in short, an exit before the keys.

What a sub-sale involves

A sub-sale is still a full property transaction. It involves an Option to Purchase, lawyers, and the developer's and the buyer's banks. A few points are particular to it:

• The Sale & Purchase Agreement. You are passing on your position under the original agreement with the developer; the lawyers handle the mechanics.
• Progressive payments. If the project is part-way through the Progressive Payment Scheme, the stage payments made so far, and those still to come, are part of the picture.
• The buyer's financing. The new buyer needs their own loan, and a bank willing to lend on an under-construction unit.

Timing within the build

The further a project has progressed, the more progressive payments have been made and the larger the sums involved. Selling early in the build, versus close to TOP, changes both the cash position and the pool of buyers. There is no single best moment - it depends on the project and the market - but knowing where the build stands helps you set expectations.

Seller's Stamp Duty: the cost that surprises sub-sellers

Seller's Stamp Duty (SSD) is payable if you sell a residential property within a defined holding period from when you bought it. Because a sub-sale by definition happens not long after purchase, SSD frequently applies. The holding period is counted from the purchase date, and selling within it triggers SSD on a tapering scale. Confirm the current SSD holding period and rates with IRAS - on a sub-sale this can be a large sum, and it can decide whether the sale makes sense at all.

The market risk

A sub-sale exposes you to the market in a particular way. You are selling an unbuilt unit, often in a project where the developer may still have unsold units to market - sometimes with prices and incentives you cannot match. Sub-sale buyers also know you may be a motivated seller. None of this makes a sub-sale a bad idea; it means you should price and time it realistically.

The honest summary

A sub-sale is a legitimate, structured way to exit a new launch before it is completed - but it is a real transaction, and Seller's Stamp Duty very often applies because the sale happens within the holding period. Get the SSD position confirmed with IRAS, have a conveyancing lawyer walk through the assignment and the progressive-payment mechanics, and price realistically against the developer's remaining stock. Treat a sub-sale as a considered decision, not a quick flip.