New Launch Vs Resale: Which Is More Profitable? We Look At 3,612 Transactions Over 5 Years

  • October 11, 2022
  • 7 min read
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Ryan J

Ryan is an old school print journalist gone digital. He's lived in almost every type of housing in Singapore, from flats to landed homes. Over the past 18 years, he's been a content developer for companies large and small, a co-founder in an education business, and sometimes a voice on the radio. He also spends too much time and money on painting little plastic soldiers.

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7 months ago

In your analysis of ‘profit’, did you consider the stamp duties of 3-4%? The cost of selling via an agent of 2%? And also the cost of equity for resale having the cash on a risk free basis of at least 2.5% with cpf (higher in recent times)?

My estimate of breakeven for new deals is approx 8% or so after 3yrs. So if it’s 9% profit at sub sale you should b barely breakeven. Resale would have to take into account cost of leverage.

Stacked Homes
7 months ago
Reply to  Haojie

Hi Haojie, we did this piece as an across-the-board look at the pure profitability based on purchase and selling price. It wasn’t meant to be a piece that calculates actual profitability. For that, it would be a lot more in-depth because we’d need to account for the interest rates at the time of purchase, smaller loans for new launches, possible rental income for resale transactions (as well as larger interest costs since it’s not a BUC). With regards to agent fees and stamp duties, new and resale are affected equally and so there was no real need to make an exception for each.

We’d like to reserve this for another piece which would be more in-depth 🙂

want to buy private
want to buy private
7 months ago

hi whats new sale to new sale?

Stacked Homes
7 months ago

Likely OTP lapsed but was recorded earlier, these can be ignored.

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