Most homebuyers might consider a $30,000 deposit as too much money to forfeit, whether it's a property purchase or any other big-ticket acquisition. But in some cases, especially when it involves the home you'll be staying in for the next several years, getting out of a bad decision more than makes up for the cost of the deposit.
This was the experience faced by a couple who held an option to purchase (OTP) for a new launch unit in Ang Mo Kio, days after selling their former home at a condo in Whampoa.
The couple wanted to upgrade to a larger-sized condo unit to accommodate their growing family, while also looking for a property that would increase in value over time and that they could capitalise on when they eventually sold it.
But shortly after paying the 5% booking fee for the new launch condo unit, the couple realised they had made a mistake. The unit that they had chosen didn't give enough space for a family of five, and the project wouldn't be ready in time for their needs.
This was a stressful situation as they reassessed their options moving forward. They sought advice from the Stacked Consultancy team and encountered Cherie Chua and Grady Chew. They made first contact in July 2026, with the aim of restarting their search for a more suitable resale unit.
"At the time, the stress of the situation led to the couple losing sleep. It didn't sit well with them that they had to settle for a unit that didn't suit their needs. They shared with us that if they couldn't find a more suitable resale home, they would have gone ahead and exercised the option to buy the new condo unit in Ang Mo Kio," says Chua.
Initially, the couple wanted to buy a property that prioritised capital appreciation
Their starting purpose to ballot for a unit at the new launch condo project came up because the couple were looking for a home that would maximise their potential capital gains when they eventually sold the unit.
According to Chua, this was the couple's main priority, and the reason why their previous agent (unaffiliated with the Stacked Consultancy team) had recommended a new launch project.
On the face of it, focusing on new launch projects as a capital growth-focused strategy makes sense, since most new launch projects generally record greater capital appreciation immediately after their completion. In contrast, it is unlikely that most resale projects will see this type of explosive price growth, says Chua.
She adds that boutique projects, like the one the couple previously owned, also tend to appreciate at a slower rate because they usually attract a smaller pool of buyers. This can often cause available resale units to remain unsold for a longer period of time.
This couple had already sold their former condo unit and needed a replacement home quickly.
Their previous home, in an older condo in Whampoa, had also been poorly maintained for some time, and the parents were worried for the safety of their children. For them, the last straw was when the lift malfunctioned and unexpectedly and suddenly descended.
The very next day, they viewed a 99-year leasehold new launch project at Ang Mo Kio. At the time, they thought that it could work for them, and that they could rent a place for their family while waiting for the new development to be completed in 2028.
The couple submitted a cheque for their selected unit after the initial sales launch, and a week later, they paid the booking fee and received the OTP. They had selected a 1,012 sq ft three-bedroom unit for $2.378 million ($2,350 psf).
After further scrutiny, they quickly realised the mistake in their choice
But doubts set in quickly after the couple received the OTP, and the day after their sales booking, they set out again to explore alternatives, looking to find a more suitable unit on the resale market on their own.
Browsing through listings, they managed to find units for sale that were much bigger than the new launch three-bedder they had on hand. Those resale units could be moved into in a relatively short amount of time, and were in neighbourhoods that they were already familiar with.
The couple researched and visited condo units for sale in Whampoa and the surrounding areas within District 12, where they wanted to live. However, their search made them even more confused about what they wanted to do going forward, since they had already paid the option fee for the new three-bedder.
This was when they reached out to the Stacked Consultancy team and encountered Chua and Chew for the first time. "The couple had a sense that they hadn't thoroughly seen all of the resale options available to them, but the scope of what was available appeared to overwhelm them," says Chua.
After discussing their situation with both property agents, they realised that they may have been too quick to limit their initial search to new launch projects. They did not balance their desire to reap higher capital appreciation in the future with their priorities as owner-occupiers and a family.
“In hindsight, I had the impression that the couple were swept up in the frenzy of the new launch, and were pressured into purchasing a unit. After speaking with them to really understand their needs, it became clear to Grady and me that the room sizes were not going to be adequate for their children as they grow up," says Chua.
Restarting their property search with fresh eyes
In order to avoid past mistakes, Chua wanted to be clear with the couple that they had to choose between buying for the purpose of investing, or a place to live. “When you are clear on whether the property you're purchasing is an investment asset or for your own stay, most buyers will be in a stronger position to know how to prioritise their choices," she says.
Increasing the budget also wasn't an option; thus, something else would have to be compromised.
Initially, Chua advised the couple to keep the new launch unit that they had bought, exercise the option and then sell the unit when it was completed. This would provide them with some additional equity, and allow them to look for a suitable home immediately after.
But the couple weren't comfortable with this path, since they would have to rent a place to stay for at least two years. It would have been an inconvenience for their family of five. Moreover, to avoid paying any Seller's Stamp Duty, they would have to hold the property for at least four years.
The problem with this solution was that the family's needs were not being met. That left the couple with only one option: to buy a resale property and forgo 1.25% of the purchase price, or about a quarter of the option fee.
"In my experience, only a handful of buyers, realising their situation, may bite the bullet and go through with it. So I was taken aback when they informed me of their choice to forfeit," says Chua, recalling that the couple said to her: "We're ready to forfeit if we have to".
Going back to the drawing board
The couple expressed that they would rather stay in the Whampoa area, because each of them had to commute to opposite sides of Singapore for work. One had to travel to Tuas, while the other had an office in Changi. At the same time, their children were enrolled in schools in the central and north regions.
She suggested Beacon Heights, Cityscape @ Farrer Park and Eight Riversuites - all projects that are either close to Whampoa or around Boon Keng and Farrer Park. She also suggested Trevista and Gem Residences, which are condos in Toa Payoh. The couple also added Kerrisdale to the list.
In the end, the couple only viewed units in Eight Riversuites, a project near Boon Keng MRT near Serangoon Road, as well as Kerrisdale, a project further on Serangoon Road served by Bendemeer and Farrer Park MRT stations.
Based on their own research, the couple had a good sense of the unit types and floor plans of the units that might fit their needs. So the viewings were scheduled to check the condition of the units, as well as to get a better sense of the development for their family.
First, they viewed two units in Eight Riversuites. The owners had been living there for the past five years, and the couple felt that if they picked either of these units, it would be a very thorough renovation to get them just the way they wanted.
Next, they moved on to view four resale units at Kerrisdale. Most of the units that they went to see were tenanted, and some were partitioned to accommodate a co-living arrangement or as student housing. The particular configuration made the rooms look dark and gloomy, recalls Chua.
But the units at Kerrisdale were slightly larger compared to the units that they visited at Eight Riversuites. The three-bedders at Kerrisdale range from 1,259 to 1,281 sq ft, compared to 980 sq ft for a similar unit type at Eight Riversuites.
In terms of $psf price, the three-bedders at Kerrisdale were going for about $1,678 psf, while the three-bedroom units at Eight Riversuites were priced at about $1,790 psf.
In terms of their location, both projects were comparable. They were off Serangoon Road and close to a couple of MRT stations.
But the couple also wanted to check each project's sinking fund, after their experience living at their old Whampoa condo. They wanted to ensure that the sinking fund of the property would be enough to cover such expensive maintenance works.
According to Chua, this is a good practice that more homebuyers should check when they are scrutinising an older development. “Some [sinking funds], in badly managed condos, can be in the red,” she says.
In the end, they went with a three-bedder at Kerrisdale
The couple finally chose a unit on the eighth floor of Kerrisdale because the unit featured a generous living space. Each of the rooms could fit a study table next to the bed, and a master bedroom was large enough to fit a queen-sized bed for the parents and a single bed for their youngest child. These were non-negotiables for the couple, says Chua.
Although most of the rooms in the unit were partitioned, the owner had a video of the original layout so the couple could picture what it would look like after renovation. Despite being on a relatively low floor, the unit was also bright and breezy, says Chua.
Overall, they calculated that the cost of renovation was within their budget, especially given their $30,000 mistake.
Ultimately, the couple paid $2 million ($1,590 psf) for the 1,259 sq ft unit. At this point, they finally committed to forfeiting a portion of their new launch option fee.
Resale units at Kerrisdale also reported stronger historical annual returns compared to units at Eight Riversuites
A significant factor that also pushed them towards the three-bedder at Kerrisdale was its resale potential. According to an analysis by Chew, the potential capital returns for a resale unit at Kerrisdale could grow more than twice as quickly compared to similar resale units at Eight Riversuites.
His analysis also showed that most resale units at Kerrisdale reported a market score of 69.2% compared to Eight Riversuites, which landed a score of 60.0%. This is based on a proprietary development analysis used by Chew to evaluate different private residential properties.
That's despite Kerrisdale being the older project, at about 21 years old compared to the 10-year-old Eight Riversuites. But according to Chew's research, resale units at Kerrisdale are still more likely to report better returns in the coming years.
However, Chua cautioned the couple that their unit at Kerrisdale was unlikely to reap them the maximum capital appreciation that is often recorded at most new launch projects. “But it will preserve their capital, the family’s needs are all met, and it’s a comfortable space," she says.
What Are The Key Takeaways?
Ultimately, this case should remind buyers not to rush into a property purchase. The couple ended up submitting an OTP for a new launch project because they were anxious after selling their former home and didn't have a replacement home lined up.
Both Chew and Chua advise that when making a decision to purchase property, waiting it out will always result in a better outcome than making a decision driven by anxiety.
Next, this case also reminds us to be clear on our buying priorities. The couple faced trouble when they realised that they made a decision which did not meet their needs. They likely over-emphasised their desire to buy a place that could make them money, rather than one that would satisfy the needs of their family. Getting clear on the order of these priorities will make the search and purchase process smoother.
A resale unit can still turn a profit down the line. “But it also depends on your time frame, and what you are buying into,” says Chua. A resale unit’s potential comes down to the project and the specific attributes of the unit, including the purchase price, how its resale performance has tracked in recent years, and how the area around it might change in the coming years.
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