Clash of New Launch vs Resale - Which has more potential profits $$$?
Most people love to buy NEW things such as new clothes, a new car and of course a new property. There are only 2 products that I can think of that you can buy and sell and in the process make a profit is a property and cars.
Of course, this depends on the price of COE. When the car was price rises. higher than the level you had originally purchased, you can potentially make money by selling your care
Your new home can be either a resale property or a new property purchased from the Developer. Some people would prefer to use the words BUC (Building Under Construction) to describe a new launch condo.
Now that we have ascertain that purchase of a property has its benefits, the question is should should you buy a new or a resale property.
Without looking at the charts and just looking at the properties of Mandarin Gardens and Seaside Residence, you would think that you can make money from a resale property, you would not be wrong to think that Mandarin Gardens owners would make more money market than Seaside Residence. If you look at the price action chart between Mandarin Gardens which is a old development and Seaside Residence which is a new development, you will see that Seaside Residence price is maintained above $2,000 psf whilst Mandarin Gardens is heading southwards.
The reason for comparing these 2 condos is because they located relatively close to each other. As such some investors may think that it is a better bet to buy Mandarin Gardens as compared to Seaside Residence. From this chart, it is crystal clear that it is not true.
Of course there are also benefits of a resale condo as it is definitely cheaper by 20% to 30% and if Size matters, generally speaking a resale property is generally more spacious.
Hence, that's the reason so many investors are going for a new launch condo compared to a resale. This is also coupled with the fact that new launch unit sizes are smaller and will result in a lower selling quantum compared to older developments which will command a higher quantum.
