5 tips when it comes to purchasing a newly launched residential property
Source: Straits Times
In the first quarter of 2021, the property market has shown signs of growth and escalation in the transaction sales. Analysts still expect the number of homes sold by developers in the primary market to surpass 10,000 units this year, with some suggesting sales volumes could climb as high as 12,000 units. When making a decision to buy a newly launched residential property, it is important for you to note some things other than your budget.
Tip #1: Location is key to valuable real estate
Source: Property Guru, depicting OCR, RCR and CCR
“Location, location, location” is a common mantra in real estate. And it is good advice—except for one thing: Most people have no idea what it really means.
Firstly, one should note the location of the newly launched properties. Some of the newly launched properties are via the government land sales (GLS) scheme which are generally located on an empty or vacant plot of land. Others would be on a previous development that has undergone en-bloc or collective sale exercise, where the location is generally more proximate to mature amenities.
In terms of accessibility, you should look for a neighborhood that is situated near a city’s major transit routes and that has more than one point of entry. Commuting to and from work is a big part of many people’s day, so a house with easy access to roads and public transportation will be more desirable than one that is tucked away and can only be accessed by one route.
Tip #2: Essential micro-factors: Size, Orientation and Layout
Source: Property Guru
Next, one should note on the size of the property, the facing of the property as these factors may affect the prices within the development itself. Properties with higher square footage would generally have a lower price per square foot (psf), whereas smaller size properties would generally have higher price psf. Additionally, properties that have north-south facing, facing the pool or with a view would generally fetch a price premium compared to those units that do not.
Properties with a more regular, squarish layout would have a higher demand compared to properties with odd and irregular layout. So do take note of this especially if you plan to sell your property in the future.
Tip #3: Study the floor plan – it is important
Source: BCA, floor plan of a typical condo
While eye-catching photos and descriptions are great, they don’t provide you with useful details such as the number of rooms, bathrooms, unit sizes, layouts, windows, and even finer details such as furniture, electrical points and unit measurements. This information is vital to help a buyer decide if the property is right for them, or if it’s worth buying at all. For example, a 4-bedroom floor plan would indicate the number of bedrooms, unit size, and size of the living/dining area.
With floor plans, you’ll spare yourself from the disappointment of finding out that the house isn’t what you thought from the photos – checking out the showroom with the correct dimension helps too!
Tip #4: Developer and material used
Source: Peak Magazine, featuring Boulevard 88 one of the freehold luxury developments in District 10
Properties developed by developers like City Development Limited (CDL), CapitaLand and Frasers tend to gain greater popularity due to their track record in building high quality developments. Their experience also provides a sense of security to buyers as they are likely to not be able to finish the development of the property. Hence, knowing and identifying the developer would help you to make an informed decision whether to buy a building under construction.
Some newly launched properties come with luxury fittings such as marble countertop for the kitchen, homes equipped with Internet of Things (IoTs) that allows a home to be smart as well as having appliances and fixtures of high-quality brands like Duravit. Do take note of the fittings that come with the property so that you would know what to expect upon collecting your keys.
Tip #5: Price
Buying a newly launched property would mean that some developers would give early bird discounts to attract buyers on the launching day. These discounts could make buying a newly launched property more affordable. However, do note price psf of new properties are generally higher than sub-sale properties due to high land cost and building materials.
Building under construction also allows for progressive payment compared to a usual resale property. This means that you would only need to pay the corresponding amount of money based on the stages of development. For example, you would only need to pay $700 per month during the foundation period. Upon completion, you would need to pay an additional 10% per month for the reinforced concrete framework phase. This would reduce the strain on your pockets compared to purchasing a resale property which would require you to pay the mortgage payment monthly at once. However, do take note that you may only take floating rates under bank loans for buildings under construction.
Now that you’ve gained some insights through this 5 useful tips, are you ready to get some advice to start your purchase of newly launched condos? Speak to us now! At Storeys, we will be partnering with you and this could give you peace of mind. Simply mail us at hello@storeys.sg or call us at 8366 8383 for us to be part of your journey!
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