Does progressive payment for new projects fuel high new condo prices?
Strong launch demand signals buyers’ willingness to pay for newness, layouts and facilities, potentially sustaining the pricing gap between uncompleted projects and resale condominiums.
Recent major condominium launches achieved weekend sales rates above 80 or 90 per cent, while some new units commanded premiums of at least 40 per cent psf over nearby resales.
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[SINGAPORE] Singapore residents love new condo homes. Some recent major condo launches have achieved sales rates exceeding 80 per cent or even 90 per cent during their launch weekends.
Meanwhile, various new condo launches have set benchmark prices in their locations. A new condo unit might fetch a premium of 40 per cent or more on a per square foot (psf) basis over a resale unit nearby.
Various factors help explain the price gap between new and resale units. For example, new condos may have more efficient layouts as well as better finishings and facilities. Some buyers might be enamoured by having a brand-new home.