The condominium market is currently the most popular form of real estate in Singapore. People that are looking to get on the property ladder purchase condominiums because of their cheap and affordable prices in comparison to free standing buildings that require ownership of land. There are two forms of property that potential homeowners can purchase, this is either new launch property or resale property. Each form has their own benefits and downfalls. It’s important to understand what to expect from each form of property before setting out to purchase a condominium.
Purchasing newly built property is the most popular option for budding homeowners. One of the main reasons why is because investors will be able to set up payment plans where they can pay off the balance of the condo over the course of time through instalments according to the construction progress. This is also known as Normal Progressive Scheme. Payment will be based on each stages of completion. This means that buyers can spread out the payment of their house, rather than getting a housing loan (which is usually up to 80 percent of the final cost) from the start, which is what one would have to do if they were to purchase a resale property. In this case, Buyer will not required to start a full 80% loan immediately or worst still if they fall under the 60% loan criteria, they would have to forked out 40% upfront.
Without a doubt the primary advantage of buying a new launch property in Singapore is that the development will almost certainly be state of the art. Most of the new buildings have been designed by some of the world’s most respected architects and look very pleasing to the eye. The new developments will also contain all of the most up-to-date facilities, ensuring that the residents are getting the absolute maximum out of their unit. New launches also offer better pricing as buyers will be able to enjoy great saving such as earlybird discount, rebates and also selection of choice units at the VIP Preview before it is officially launch to the public.
Resale property isn’t as popular as new launch property. This is because of the 16 percent revised sellers’ stamp duty that was introduced in January 2011. Since this was introduced the amount of resale buyers has drastically dropped. The reason why many people do not decided to purchase resale property is because if they buy a condominium in a new project then by the time the development has been finished (3-4 years) they will have to pay little or no stamp duty if they decide to sell the property.
There are however some advantages to purchasing a house on the resale market. Older developments are known for offering larger units than the new developments. This is because there are a recent trend with new developers to make everything smaller. This is because the smaller they make the apartments more affordable they can make them. This has had positive effects on buying resale housing as area within a resale unit tends to be larger for the price. Older development which has bigger unit size will result in higher quantum. This can make resale housing a better option for people that are looking to purchase a condo with bigger size and with immediate occupancy. People that want to purchase resale are likely to find bargain, it can however take a lot of time to find a seller that is willing to accept a low price.
It’s also worth thinking about the three different levels of condominium in Singapore. These are; mass market, mid market and high range. Each development that is built in Singapore will fit into one of these categories, whether a new project or a resale property, and prices between each of them will drastically vary.
The mass market category will cater for the budget buyer. These developments are usually built on the outskirts of a city and are much cheaper in comparison to the other options. A condo unit in a mass market property is perfect for buyers that are interested in hopping onto the property ladder, or for up and coming investors that are interested in purchasing some real estate. Typical features of a mass market condo include; communal swimming pool, car parking area, security and gym.
The mid market properties are situated on the outskirts of the prime areas, or the main areas of interest within a city. The mid market properties are perfect for professional people that don’t mind commuting into the main city for work and leisure. Typical facilities that are included within a mid market condo include; gym, swimming pool, underground car parking, tennis courts and 24 hour security.
The high range condominiums in Singapore are located in central areas of a city and will cater for wealthy buyers that enjoy living a higher class lifestyle. A unit within the high range category will be fitted with all of the latest furnishings and fixtures and will likely include; yacht docking, function rooms, squash courts, tennis courts, swimming pool, suana, Olympic gym, personal parking space and 24 hour security.