Avoid the Hype: Why Resale Condominiums Outperform New Launches in ROI

The Singapore property market frequently highlights spectacular new launch developments. However, sophisticated investors understand that from a pure Return on Investment (ROI) perspective, resale condominiums frequently outperform new launches.

**The New Launch Premium Problem**
New launches in Singapore currently sell at a massive premium compared to surrounding resale properties. It is not uncommon for a new launch to be priced at SGD 2,500 PSF, while a 5-year-old adjacent resale property sells for SGD 1,800 PSF. This 30%+ premium means new launch buyers must wait years for the resale market to catch up before they see any capital gains.

**Immediate Rental Income**
Unlike new launches, which take 3 to 4 years to complete (during which buyers pay progressive interest without income), resale condos can be rented out immediately. This instantaneous rental cash flow significantly improves your cash-on-cash return.

**Floor Plan Value**
Older resale condominiums generally offer larger, more functional layouts. A 2-bedroom resale condo might measure 850 sqft, compared to just 650 sqft for a modern new launch. Renters and subsequent buyers are often willing to pay more for this extra usable space.

Tags: resale condos new launches ROI rental yield

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