I believe many friends who are planning or considering buying property in Singapore for investment have thought about this question: should I buy a new launch condo or a resale condo? New condos are more expensive, smaller in size, so should I still consider them? These are common questions I am often asked.
Today, as a seasoned local real estate agent, I will analyze the investment choices between new and resale condos in Singapore through different real-life case studies.
Table of Contents
Case Study 1: Queens vs Commonwealth Towers
| Project Name | Tenure | Completion Date | Address |
| Queens | 99 years | 2002 | 10-16 Stirling Rd, Singapore 148954 |
| Commonwealth Towers | 99 years | 2017 | 230 & 232, Commonwealth Ave, 149740 |
Let’s hop into a time machine and go back to May 2014, when the new condo project Commonwealth Towers was launched for sale at an average price of S$1,631 per square foot.
Meanwhile, just 300 meters away, a resale condo project, Queens, had an average selling price of only S$1,263 per square foot, which was S$368 cheaper per square foot than Commonwealth Towers.
Both projects are located near Queenstown MRT station, but by the time Commonwealth Towers was launched in 2014, Queens was already 12 years old.
If you had the chance to go back to that time, would you choose to buy the lower-priced, larger resale condo, Queens, or the higher-priced, smaller new condo, Commonwealth Towers?
Let’s look at the price appreciation results for these two projects from 2014 to 2021!
From the data above, you can see that the average selling price for Queens condo in 2021 was S$1,334 per square foot, representing a price growth of 5.68% from 2014 to 2021.
The average selling price for Commonwealth Towers condo in 2021 was S$1,895 per square foot, representing a price growth of 16.21% from 2014 to 2021.
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Case Study 2: Compass Heights vs High Park Residences
| Project Name | Tenure | Completion Date | Address |
| Compass Heights | 99 years | 2002 | 11 Sengkang Square Compass Heights, 545076 |
| High Park Residences | 99 years | 2019 | 21 Fernvale Rd, Singapore 797637 |
Let’s take the time machine again, back to July 2015, when the new condo project High Park Residences was launched for sale at an average price of S$982 per square foot.
In the same area, 3 kilometers away, a resale condo project, Compass Heights, had an average selling price of only S$824 per square foot, which was S$158 cheaper per square foot than High Park Residences.
At the time High Park Residences was launched in 2015, Compass Heights was already 13 years old.
If you were given another chance to go back in time, would you choose to buy the lower-priced, larger resale condo, Compass Heights, or the higher-priced, smaller new condo, High Park Residences?
Let’s unveil the price appreciation data for these two projects from 2015 to 2021!
The average selling price for Compass Heights condo in 2021 was S$879 per square foot, representing a price growth of 6.70% from 2015 to 2021.
The average selling price for High Park Residences condo in 2021 was S$1,282 per square foot, representing a price growth of 30.48% from 2015 to 2021.
Case Study 3: De Lente vs Leedon Residence
| Project Name | Tenure | Completion Date | Address |
| De Lente | Freehold | 2002 | 104 Holland Rd, Singapore 278547 |
| Leedon Residence | Freehold | 2015 | 12 Leedon Heights, Singapore 267935 |
For our last case study, let’s go back to August 2012, when the new condo project Leedon Residence was launched, with an average selling price of S$1,952 per square foot.
Right next to it, a resale condo project, De Lente, had an average selling price of only S$1,650 per square foot, which was S$302 cheaper per square foot than Leedon Residence.
These two projects are adjacent, less than 100 meters apart, but when Leedon Residence was launched in 2012, De Lente was already 10 years old.
After looking at the two previous examples, let’s see if this third example yields a different result.
From the data above, we can see that the average selling price for De Lente condo in 2022 was S$1,652 per square foot, representing a price growth of 0.08% from 2012 to June 2022.
The average selling price for Leedon Residence condo in 2022 was S$2,594 per square foot, representing a price growth of 32.85% from 2012 to June 2022.
Conclusion
Based on the three case studies researched by AnjiaSG, it’s not hard to see that new launch condos have performed better in terms of price appreciation compared to resale condos. Of course, not all new condos will have the same performance, but according to our research, most new condos tend to outperform older resale condos within the same period.
Leo Kwek, a senior real estate agent at AnjiaSG, says, “The insight into the higher capital appreciation potential of new condos can be broken down into the following four factors”:
• New condos have better layouts
• The advantages offered by new condos
• The “new is always better” mentality
• The investor-friendly progressive payment scheme for buildings under construction
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