• Joshua Loo

The Ultimate New Launch Property Guide in Singapore for 2021

Updated: Dec 26, 2020

With plenty of residential property launches in the Singapore market now, many homeowners or investors are spoilt for choice.


In this article, I will explain in-depth with this new launch property guide on how you can identify what are the points that you can take note of in regard to selecting a good new launch property to buy. These are what you should look out for even before stepping into a show flat.


This is a pretty extensive article and I have broken it down into several main points. The main points will have sub-categorization to give you a brief overview of the subject matter. Should you require additional information, please read more into the topic as it is elaborated in further detail.


Or... You can simply force your way into the property investment market, by buying the cheapest new launch condo in Singapore. I don't recommend that.


There are current limitations in terms of creating a table of contents that hyperlinks straight to the subject matter, which might be of a slight hassle for you. Fret not, I will be updating it with this feature should it be made possible.

I will regularly update this article in the event of updated news from government regulations and changes within the real estate industry.


UPDATE: The Singapore new launch market has recovered after the COVID-19 lockdown in Singapore is over, which was affected greatly during the lockdown. This can be due to generous developer discounts being given to buyers.

Table of Contents

Project Cost

  • Relative Price to Other Projects

  • Land costs, Developers Breakeven Cost

Land Tenure

  • Affects capital appreciation, rental amount to a smaller degree


En-bloc Potential

  • Plot Ratio and its effect on Gross Floor Ratio

  • Why it should be an important criterion as an investment

  • Mixed developments


Temporary Occupation Permit

  • Vacancy rate


Region

  • CCR, OCR or RCR

  • Region choice affects capital stability and rental


Amenities/Disruptive Locations

  • Place of work/study, amenities

  • Noise pollution

  • Floorplan

  • Direction facing

  • Chinese Geomancy, Fengshui


Builder/Interior Work

  • Purchase from known developers

  • Defects Liability Period


Grants

  • Executive Condominiums


Miscellaneous Fees

  • Maintenance Fees

  • A range of $400-$800 dollars

  • Legal fees & stamp duties


Payment Schemes

  • Standard Scheme

  • Deferred Payment Schemes



Project Cost

Singapore is a land-scarce nation. When it comes to analyzing your latest project, have a good grasp of what are the other PSF of residential developments in the area like. Take note of the current prices of other new launch and resale condominiums. To make the best out of your analysis, it is wise to take your research a step further, and analyze other forms of properties like HDB flats (Singapore’s Public Housing) or landed housing.


Prices of all Property Types

The above chart shows the average PSF of different property types in Singapore, should you be interested in upgrading to a different property type, take note of the estimated jump in PSF.


Understanding the relative prices of other projects in the area is crucial as it helps you to know if the prices set by developers are realistic in comparison. These prices can vary depending on the land, construction and marketing cost of the new development.


Singapore New Launch Versus Resale (2017) Condominium

Take a look at this example comparing The M, a Singapore new launch condo that is still under construction versus Duo Residences, which have already been on the market for about 3 years.


Comparison between condominium projects, The M and Duo Residences

Source: 99.co


Some investors may contest that newer developments have less wear and tear to the premises and therefore can command a higher PSF. In addition, usually, newer launches have a better rental opportunity as compared to older developments.