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

  • October 11, 2022
  • 7 min read
Join our Telegram group for instant notifications
Join Now

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.

avatar
Haojie
Haojie

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
Stacked Homes

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… Read more »

want to buy private
want to buy private

hi whats new sale to new sale?

Stacked Homes
Stacked Homes

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

Latest Posts

taobao regrets
Interior “I Regret Buying From Taobao” 5 Homeowners Share Their Worst Renovation Regrets
December 5, 2022
high park residences LRT
Investment 6 Things Foreign Investors Are Seldom Told About The Singapore Property Market
December 5, 2022
tai keng estate gardens 1
Property Stories Affordable Freehold Landed Homes Under $3 Million? Touring Tai Keng Estate: Landed Homes In The Largest HDB Town In Singapore
December 4, 2022
Joo Chiat Shophouse 3
Living In Inside A Modern Peranakan Shophouse With A Beautiful Courtyard Garden
December 4, 2022
dakota breeze bto
Property Stories We Waited 5 Years For Our BTO At Dakota Breeze: Our Review Of What It’s Like To Live There
December 3, 2022
thekimsresidence 5
Interior Tour A 4-Storey Multi-Generational Home Transformation: How A Couple Mixed An Aussie Aesthetic With Japandi Style
December 2, 2022
condo vs hdb
Advice We Have $500k In Cash And Looking To Buy Our First Home. Should We Buy A Resale HDB And Upgrade Later Or Buy A Condo First?
December 2, 2022
Aiken Reuben Tour The Coolest Hidden Bar In Singapore
Tastemakers Aiken & Reuben Tour The Coolest Hidden Bar In Singapore
December 2, 2022
bukit batok hdb
Property Stories I Regret Getting A BTO: We Share 5 Uncommon Regrets Singaporeans Have
December 1, 2022
Touring A 80k Renovated 2 Bedroom Home With Sea Views
Insider Tour Touring A $80k Renovated 2 Bedroom Home With Sea Views
December 1, 2022
Hyde condo
Insider Tour Unexpectedly Gorgeous Rooftop Views At The Hyde: Inside A Boutique District 10 Condo
December 1, 2022
5 Tastefully Renovated Penthouses That Are Ready To Move In
Units Of The Week 5 Tastefully Renovated Penthouses That Are Ready To Move In
December 1, 2022
bishan view
Property Stories “I Lost Over $165,000 By Selling Early” 6 Common Regrets Of Homeowners Who Sold Their Homes In 2021/22
November 30, 2022
agent friend
Commentary 6 Reasons Why You May Want To Avoid A Friend/Family As An Agent
November 30, 2022
A Hidden Wellness Club Most People Dont Know About
Tastemakers A Hidden Wellness Club Most People Don’t Know About
November 30, 2022
Our Vanny
Property Stories How A Singaporean Couple Saved $30,000 Per Year Living In A DIY Van In The US
November 29, 2022