For many Singaporeans, buying your first home is both a passing ritual and a major financial milestone. But as prices change and the residential landscape evolves, one question continues to resurface. Can I go to a new condo or choose a resale unit that is placed in an occupied location soon?
A comprehensive look at condo price trends compares both markets and helps first-time home buyers understand that current disparities in the Singapore real estate market.
What is the price gap?
The gap between new launch condo prices and resale condo prices is not just age. Several forces are pulling two markets in different directions:
- Developer Strategy: Developers price new releases with future ratings in mind, often increasing the price in stages.
- Construction and Land Cost: The launch price has been boosted by the surge in material costs and aggressive bids for the government’s land sales (GLS).
- Buyer’s Preferences: Many locals are linking new launches to prestige, smarter layouts, upgraded facilities, and driving demand despite high costs.
- Policy and Planning: Cooling measures and additional buyer stamp obligations have restructured purchasing patterns and expectations.
Meanwhile, the impact on the new and resale condominium market is clear. The new launch is the dominant headline, but the resale property has quietly gained its place thanks to its price per square foot (PSF) rate and large layout.
Price per square foot: What are you really paying for?
Recent data shows that the gap in PSF is widening. The new condo price averages around 2,300 PSF in the central area, with resale units approaching $1,700 in the same zone.
But here the nuance is important:
- The new condominium offers longer leaseholds and modern amenities, but with smaller unit sizes.
- Resale lease projects are often found on prime plots, more spacious and already have established transport links.
- Buyers may notice that new units are shiny while resold units offer Value per dollar is especially for families who prioritize space over fame.
If you are using your first-time Home Buyer Guide, make sure you are comparing the PSF side-by-side with the available areas. You can see that the new shiny unit is smaller than the current HDB flat.
The emotional charm of a new launch
Why are buyers drawn to new releases even if numbers aren’t always summed?
- Modernity: Smart homes, branded fittings, infinity pools, coworking spaces.
- Progressive Payment Scheme:This structure allows buyers to pay in stages. This facilitates the short-term financial burden.
- Longer tenure: Buying a fresh 99 year or freehold development maximizes ownership life.
- Brand Equity: Developers often hype their “exclusive” lifestyle. This is a strong draw for status-conscious buyers.
For many people, especially those who buy your first home, these features provide an emotional sense of security that premiums are worth it. But it’s important to balance excitement and logic, especially when signing a 25-year mortgage.
The hidden costs behind the charm
A real challenge with a new release? Costs not displayed in the brochure:
- Late satisfaction: Most new projects take 3-4 years to complete. I’m paying today’s price for tomorrow’s house. This may or may not be in line with future market conditions.
- Renovation risk: Some buyers are disappointed by the event and are urging extra spending after handing over.
- Holdings cost: If you already live elsewhere or offer another loan, Double financial commitments can be emitted.
In short, the prices for the new launch condo include bells and whistles, but there are also hidden commitments.
Resale Condominiums: Underrated Candidates
Although not flashy, resale condominium prices are becoming more and more attractive. Here’s why more buyers are considering them:
- Move in Lady: No need to wait years. I rent it out and live there immediately.
- big Floor Plans: Older condominiums often offer better space and price ratios.
- Established Neighborhoods: Resale units are usually located near mature amenities such as MRTs, schools, and malls.
Savvy investors know that new launches may offer appreciation, but resale units offer immediate utility and in some cases improve rental yields.
How about the decline in leasehold rights?
One concern among cautious buyers is lease erosion of old resale units. Certainly, resale rental projects beyond the 30 year mark can see the dip of ratings.
However, not all resale condos are aged relics. Most are only 10-20 years old. This means that resale and rental value is strong, especially when it is maintained and located near major infrastructure.
It’s about the trade-offs in metering. If you plan to hold the property for 5-10 years, a priced 70-year leasehold could be better than a costly new launch at ROI.
Where does the price gap narrow?
The real estate market in Singapore is not uniform. Regional variations blur price disparities:
- Outside of the Central Region (OCR): Here, new releases are still relatively affordable, narrowing the gap with resale units.
- Remains of the Central Region (RCR): Resale condos in urban fishing locations are seeing prices rise thanks to their proximity to CBD light hubs.
- core Central Region (CCR): This is the most expensive, and the resale unit leads the high prices, especially the prices of freehold developments.
For first-time home buyers, looking at RCR and OCR can provide the best midpoint between price, space and accessibility.
How interest rates shape condominium decisions
With interest rates finally eased, many people are once again looking to the real estate market. Low mortgage bank interest rates and competitive real estate loan interest rates increase affordability. But you should not be satisfied. Mortgages in Singapore still require careful planning.
If you are considering purchasing a condominium in 2025:
- Get an approved IPA loan early. Show budgets and increase the strength of negotiations.
- Use rate reductions to your advantage, but avoid overvaluation.
- Even at a better price, don’t forget that loans for property purchases are a long-term commitment. Plan for increased costs as well as entry costs.
Final Thoughts
Choosing a new launch and resale condo in the Singapore real estate market is not an easy decision. It depends not only on your budget and lifestyle preferences, but also on how you view the long-term value of your purchase. Whether you’re looking for a dream lifestyle or a stable investment, understanding condo price trends and aligning them to your needs ensure that your real estate journey begins.
Whichever route you choose, follow these golden rules. Don’t cloud the hype. Use your data, consult with a professional and always align your property with long-term financial goals. Use this guide as an anchor. It’s not just another wish list.
Author:
Paul Grewal is a veteran Singapore-based mortgage consultant known for his strategic finesse and deep market insights. With over 10 years of experience, he specializes in helping clients navigate the complexities of real estate investments and refinance mortgages. Paul’s approach is highly personalized and ensures that clients have the best possible conditions and mortgage interest rates in Singapore tailored to their unique financial situation. A passionate writer, he regularly contributes to major financial publications and provides wise real estate investment and financial planning advice. Reflecting his commitment to empowering Singaporean homeowners, his workshop on financial literacy has been extremely popular. The blog covers it Price trends for apartments in Singaporeproviding a detailed comparison of new launch and resale condominium prices, helping buyers make informed real estate decisions.
Disclaimer: This is a paid ad
