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Is the hype around new launches in Singapore dying?

Despite the overhang of high interest rates, new launches in Singapore such as Blossoms by the Park, Reserve, and Tembusu Grand have performed well. One contributing factor is the fear of missing out (FOMO). With condos selling out at 70-80%, there are buyers who have missed out and are ready to jump in at the next launch.

The sense of urgency increases when new launches in Singapore drop consecutively, as people hate the feeling of losing out. Additionally, as new individuals are born, turn 21, and become eligible buyers who are not required to pay Additional Buyer's Stamp Duty (ABSD), the buyer pool continues to grow.

Even as Grand Dunman, The Myst, and Pine Tree Hill add around 2000 units to the inventory, we believe the momentum in the new launch segment is here to stay. Here are some reasons why they are so popular.

Why new launches in Singapore will stay popular

1. The “IPO” mentality

One trend we're observing in the real estate market is what I call the "IPO mentality." Similar to the excitement surrounding new car models or the latest watches, this mentality has now extended to property. People are always going to be drawn by products that are “BNIB”, and this holds true in public housing as well. In the HDB market, the equivalent of a new launch is the Build-to-Order (BTO) flats which, as we all know, sell like hotcakes.

Case in point: We recently worked with three young singles who had just entered the workforce. Despite having various property options available to them, they were adamant about purchasing a new property. When asked why, their response was simple: They wanted to experience the thrill of buying their first property, being the first ones to step foot into their own home. They had no intention of renting and were even willing to leave the property empty for a couple of years.

This IPO mentality reflects a mindset of buying into something new and eagerly awaiting capital appreciation and potential gains. Just like investors in an Initial Public Offering (IPO), homebuyers are attracted to the prospects of future growth and value in their property purchase. This begs the questions: Don’t resale condominiums offer potential gains, too? Well, there’s a difference. Buyers of new launches in Singapore all start at the same point, whereas in the resale market, you might enter at a higher price per square foot (psf) than your neighbours did. So, competing sellers who bought the property earlier have the advantage of potentially making a profit even if they sell at a price lower than your entry point. This doesn't mean you shouldn't consider buying a resale property, but it requires a longer-term perspective. In short, you need a sufficient number of buyers in the market to support the price point you hope to achieve.

2. Alignment with financial goals

From a financial perspective, buying a new launch property can be seen as a cheat code. Here's why: New launches in Singapore offer the advantage of progressive payment. When you decide to purchase, you only need to pay a deposit and booking fee. The payment is then made in stages according to the construction progress set by the developer. This means you don't have to pay the full mortgage amount right away, which is beneficial, especially considering the current high interest rates. Progressive payment feels less burdensome compared to taking on the full loan amount. Additionally, young buyers can expect their earning power to increase substantially in this phase of their lives, making this a sweet spot for them.

In an era of data, many of these buyers are buying a new launch property simply to take a position. They simply want a piece of the pie. More often than not, investing in new launches in Singapore proves to be profitable. Close to 97% of new launches experience capital appreciation when they reach the Temporary Occupation Permit (TOP) stage. You may have thought the price per square foot (psf) was high ten years ago, but today it has surpassed the S$2,500 psf mark. Other properties in the vicinity transact for almost S$1,000 psf less, and if the older ones end up being sold collectively, it's difficult to imagine what the next psf price will be.

The puzzle of property development has three main components: the raw material, which is land; the profit margin; and the construction process. Even if developers maintained the same profit margin, buyers have to contend with increased construction costs due to factors like the labour market and expensive materials. Plus, land is a scarce resource in Singapore and acquiring it through en-bloc sales involves a premium. There are no two ways around it.

3. A fuss-free process

The last advantage of buying a new launch property is the convenience and hassle-free experience it offers. With a defect liability period (DLP) included, the developer is responsible for addressing any defects in your home free of charge during a specified period. This means that stains, cracks, or faulty power points can be replaced or fixed without additional cost to you.

The younger generation, in particular, values this fuss-free approach. They often have busy schedules, and purchasing a new launch property eliminates the need to view numerous units or spend time negotiating prices. Everything is fresh and new, from the kitchen to the appliances, which reduces the startup costs. There is no need for extensive renovations or gutting out the entire kitchen.

While older generations may argue that 700 square feet is too small and reminisce about their larger master bedrooms, the younger generation has come to accept this constraint and adjust their expectations accordingly. They prioritise convenience and a more streamlined living experience over expansive living spaces.

What to note when buying new launches in Singapore


Pay attention to the developer's track record, past projects, and reviews of their condos. While numbers are important, it's crucial to consider the reputation and trustworthiness of the developer. A reputable brand instills confidence in the price points and provides peace of mind, assuring you of the quality you can expect.

Preferences of Future Buyers

When investing in a property, you should consider the preferences of future buyers rather than just your own. Understanding what they are looking for is key. Developers are increasingly creating products that cater to the younger generation, incorporating features like open kitchens and balconies that can be transformed into usable spaces using innovative techniques like zip tracks. As a result, concerns about lower floors, west-facing directions, and previously deemed "unusable" spaces such as patios and roof terraces may no longer hold the same weight. There will always be buyers who are willing to work around these factors, so owning a unit with these characteristics is not the end of the world.

In the event of a collective sale, factors like the floor you're staying on or whether the unit gets warm in the afternoon become less relevant. The payout is typically distributed based on factors such as unit size, share value, and valuation, following the method of apportionment. However, it's worth noting that en-bloc sales are becoming more challenging to achieve. If you are purchasing a property with the hope of an en-bloc sale in the future, ensure that it serves its purpose even if that scenario does not materialise.

New launches in Singapore - yay or nay?

In the past, learning about a new development was as simple as seeing a single picture in the newspaper. Today, with the rise of social media, the information overload can be overwhelming. It doesn’t help that there is a perception that realtors like us promote new launches in Singapore primarily for higher commissions.

However, it's crucial to be fair to the product and its target market. There are buyers who are genuinely interested in purchasing new launches, not because of the salesperson's influence, but because they have done their own research and analysis based on facts and figures. If you're curious about what all the buzz is about and would like to see data that supports the hype, feel free to reach out to me (Harvey Chia) at 9199 9141.


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