In Singapore, buying a home is arguably the most significant financial and emotional decision one can make. Yet, before the keys are collected, a crucial fork in the road appears: Do you chase the promise of a ‘New Launch’ condo, or do you opt for the established certainty of a ‘Resale’ unit?
Both paths offer unique advantages and inherent risks, particularly when considering financing choreography and long-term maintenance. Beyond the simple price tag, the choice boils down to how you prefer to manage cash flow, risk, and the expectation of perfection.
1. The Lure of the New Launch: The Future Perfect
A New Launch property exists in a state of immaculate potential. It is the architectural manifestation of a dream, untainted by previous occupancy. Buyers commit to glossy brochures, pristine showflats, and the psychological premium of being the first owner.
However, the appeal of the brand-new one like Thomson View and Dunearn Road Condo comes with a distinct financial and practical framework designed to manage the significant construction timeline.
Cash Flow Choreography: Progressive Payment
For many buyers, the most attractive financial feature of a New Launch is the progressive payment scheme. Unlike a resale scenario where the bulk of the payment is due almost immediately upon completion, this structure spreads the cost over the construction period (typically three to five years).
This means that the buyer only pays in stages, aligned with the builder’s completion milestones (e.g., foundation works, framing, roofing). This time arbitrage is invaluable for young families or those who need time for their savings or existing assets to mature, providing significant relief to immediate cash flow requirements.
The Safety Net: 1-Year Defect Liability
One major anxiety when purchasing any new asset is the possibility of manufacturing flaws. For New Launches, this risk is mitigated by the 1-year defect liability period (DL) that commences from the date of Temporary Occupation Permit (TOP) or Key Collection.
During this crucial 12-month window, the developer is legally obliged to rectify any defects that arise—from hairline cracks in the ceiling to faulty waterproofing or malfunctioning appliances—at their own cost. This DL period provides a vital layer of protection, guaranteeing that the buyer receives the pristine condition they paid for without immediate out-of-pocket maintenance expenses.
2. The Practicality of Resale: Inheriting History
The Resale market holds a different kind of appeal. These units often boast superior location maturity, larger floor plates (a rarity in modern builds), and established neighbourhood amenities. When you buy Resale, what you see is what you get—and crucially, you get it now.
However, the immediacy of ownership demands a different approach to financial planning and risk assessment.
The Immediate Commitment: One-Time Loan Disbursement
If the New Launch buyer enjoys a slow, calculated financial dance, the Resale buyer must be prepared for a sprint. Once financing is finalized and the Option to Purchase (OTP) is exercised, the bulk of the funds—often powered by a single, large mortgage—must be ready.
The lender effects a one-time loan disbursement to the seller, usually coinciding with the completion date (typically 8 to 12 weeks after the OTP). This demands that the buyer has all necessary cash (for stamp duty, downpayment, and legal fees) readily available and that their ongoing debt servicing capacity is immediately prepared for the full mortgage amount. There is no progressive easing into the monthly loan repayment.
The Hidden Cost: Unseen Wear and Tear
The inherent risk of buying an existing property is inheriting its history. While a physical inspection can reveal cracked tiles or worn cabinetry, the real danger lies beneath the surface: unseen wear and tear.
This includes critical, often expensive, hidden problems like corroded copper pipes buried within walls, failing waterproofing membranes in bathrooms or balconies, or outdated electrical wiring that cannot support modern demands.
The Resale buyer must factor in a financial buffer for these inevitable rectifications. Without the protection of a developer’s warranty, the moment the keys are handed over, the new owner assumes full responsibility for all past structural compromises. While a professional inspection can help, the extent of underlying damage remains a significant variable.
The Verdict: Which Path is Yours?
The choice between a New Launch and a Resale unit is not about which is inherently “better,” but which aligns best with your financial profile, risk appetite, and timeline.
| Feature | New Launch | Resale |
| Financing | Progressive Payment (easier on immediate cash flow) | One-Time Loan Disbursement (requires immediate full servicing) |
| Risk Mitigation | Protected by 1-year defect liability period | Immediate responsibility for all existing damage |
| Maintenance | Zero immediate repair costs (brand new) | High risk of unseen wear and tear requiring immediate capital outlay |
| Timeline | Long waiting period (3-5 years) | Immediate move-in (2-3 months) |
If you are a young professional prioritizing staggered payments and peace of mind regarding maintenance, the New Launch’s progressive payment structure and 1-year defect liability offer significant appeal.
If, however, you need an immediate home, prefer established locations, and are prepared to manage the immediate financial pressure of a one-time loan disbursement (while budgeting for the risks of unseen wear and tear), the Resale market offers concrete, immediate reality.
In Singapore’s competitive housing landscape, understanding these core distinctions is essential for turning a property dream into a sound financial decision.
