New or Resale Property?

[FilthyRich]

As seen in an article, In Seletar Hills, for instance, a three-bedroom, 1,227 sq ft apartment at Greenwich – a newly launched project, has sold for about $1.6 million – or $1,300 per sq ft (psf).Yet further into the estate, units at an older freehold condo, Nim Gardens, have transacted for between $1.36 million and $1.48 million. With a floor area of 1,830 sq ft, this works out to just $740 to $800 psf.
We can see that the difference is indeed Significant.

So why would one still choose to purchase new properties over resale ones?

[FilthyRich]

Compared to Sky Habitat, resale prices for some completed freehold properties in the prime districts would appear attractive to some buyers, say agents. For example, a 990 sq ft ground floor unit at One Jervois changed hands for $1,515 psf (reflecting an absolute price of $1.5 million) in March, while a 947 sq ft unit on the third floor of Jervois Regency sold for $1,361 psf (about $1.29 million) in April.

source

Can someone enlighten me

[radha08]

a new civic average price costs 150K....5 year old civic 50 to 60k...people still buy NEW what to say...

[ysyap]

People generally like new stuff? Or is this reflective of the wealth of Singaporeans? I think I belong to the bottom 10% of income earners in our country liao...

[gn108]

New car smell.

New house also got new house smell ... knowledge that you're the first owner to sleep on your new matteress and bed ..dreaming nothing but sweetness

a new civic average price costs 150K....5 year old civic 50 to 60k...people still buy NEW what to say...

[ysyap]

New car smell.

New house also got new house smell ... knowledge that you're the first owner to sleep on your new matteress and bed ..dreaming nothing but sweetness

The Banglas already slept in your unit during the construction phase. Owners are usually not the first to enjoy the house... Lol!

[radha08]

The Banglas already slept in your unit during the construction phase. Owners are usually not the first to enjoy the house... Lol!

[gn108]

I know - I read that earlier -

Hence I wrote, new matteress and bed ...

The Banglas already slept in your unit during the construction phase. Owners are usually not the first to enjoy the house... Lol!

[FilthyRich]

The money saved can be used to renovate the house inside out many times already

[carbuncle]

From past experience, personally, a well kept and well loved resale property is definitely much more of a joy to own and occupy than a cold stark brand new one that smells of not quite fully dried cement...

[chiaberry]

The money saved can be used to renovate the house inside out many times already

Buyers have no CASH to renovate the old house....that's one of the reasons. And also the shared areas and facilities could be dated and run-down.

[Rosegarden]

a new civic average price costs 150K....5 year old civic 50 to 60k...people still buy NEW what to say...

Car, 10 years, whereas house, at least 99years. A few years off the 99 shouldn't be that much right? And some older architectures are more appealing compared to an optimized glass block. More glass also means higher air-con costs.

[radha08]

Car, 10 years, whereas house, at least 99years. A few years off the 99 shouldn't be that much right? And some older architectures are more appealing compared to an optimized glass block. More glass also means higher air-con costs.

ya putting all that aside i think people mentality still the same new is better...

[desfrie]

Well, life is short, do enjoy the "newness" of your property!

Even though it makes less economic sense, I'll rather buy new!

[Rosegarden]

Well, life is short, do enjoy the "newness" of your property!

Even though it makes less economic sense, I'll rather buy new!

Ok, understood. May I ask what is the "newness premium" you would be willing to pay? Assuming everything else similar, new vs a 5 yo condo? 10%, 20%, 30%?

Using 5yo because that's when EC comes on the resale market.

[desfrie]

Ok, understood. May I ask what is the "newness premium" you would be willing to pay? Assuming everything else similar, new vs a 5 yo condo? 10%, 20%, 30%?

Using 5yo because that's when EC comes on the resale market.

I am willing to go up to 20-25% for "newness" premium.

[thomastansb]

But most people think otherwise. That is why people still go for new properties.

From past experience, personally, a well kept and well loved resale property is definitely much more of a joy to own and occupy than a cold stark brand new one that smells of not quite fully dried cement...

[CCR]

I think when singaporean buy new at more than 20% premium then its an emtional decision....

There is really investment value to buying at such high prices....

They see.... they like..... banker say they can borrow.... they buy...... Later then cut donw on other expenses..... never think about tomorrow...

[DKSG]

I think when singaporean buy new at more than 20% premium then its an emtional decision....

There is really investment value to buying at such high prices....

They see.... they like..... banker say they can borrow.... they buy...... Later then cut donw on other expenses..... never think about tomorrow...

Traditionally new-old premium is about 15%.

Similar to LH/FH premium.

DKSG

[Rosegarden]

I am willing to go up to 20-25% for "newness" premium.

Thanks. That syncs with the premiums observed on the ground e.g. The Vision vs Blue Horizon.

[lajia]

I personally think that we should go for new ones if the nearby resale units try to sell as high as the new ones, I mean not equal but they try to raise if they see the nearby project selling well...then in the end, when u factor in the Reno cost, the remaining yrs of the LH 99, etc, then maybe the new one would be more worthwhile.

[desfrie]

Regarding "emotional" issue about buying new and hence need to borrow more money etc....I am fortunate that my past 2 purchases have been positive returns wise.

I have bought new at a particular cycle relative to the resale condos at that time. So it is foolish to say that if buy new will lose money. Yes, I could have made more if I buy resale but I prefer the calculated abundance mentality instead of stinging and always stuck in resale. In this way, I have have a balance of both returns and enjoyment.

[carbuncle]

like women, some projects age like fine wine. and some... er....