5-Minute Guide to Buying a Condominium in Singapore
If you’re hoping to invest in a condominium to call home, you’ve arrived at the right place.
To help you make an informed decision, we’ll be covering the key differences between a new launch, resale and executive condominiums, the amount of upfront cash you should prepare, and when its time to consult a property agent.
Why Condominiums Attract Singaporeans
As a potential private property buyer, you probably share the same sentiments as other condominium owners on our island.
With the resort-like interiors, security and privacy that condominiums have to offer, it is no wonder that many Singaporeans aspire to own a condominium.
Several condominiums also boast of premium facilities such as swimming pools, gyms (some are even open 24 hours a day), function rooms, and more. These are especially attractive for families with young children.
Next, condominiums also offer higher security compared to HDBs as almost every condo management team engages security guards who are on duty 24/7.
New Launch, Resale Condo, Executive Condo – What’s The Difference?
As a potential home buyer, you will need to weigh your options carefully before making a decision. We lay out the differences between new launches, resale condos and ECs to help you get your facts in order.
A new launch condo, as its name suggests, is a brand-new development that has yet to be built. If you opt to purchase a new launch condo, you’ll have the privilege of choosing the specific unit you prefer, and you might receive discounts as the developer is trying to market their new launch to potential buyers. However, the waiting time for a new launch is the longest, ranging anywhere from 1- 4 years.
Resale condos are units in existing condominiums that were previously inhabited by other owners.
These tend to be more costly, as buyers may have to spend more money on renovation costs. Resale condos, however, are the most efficient in terms of waiting time — buyers get to move in as soon as the transfer of ownership is completed.
Executive condominiums are private, yet public housing – they are fashioned to look like typical condominiums but are subsidised by the Singapore government. This is a favourable option in terms of cost, however, eligibility criteria do apply – eager buyers should have a gross household monthly income that does not exceed $14,000.
Money, Money, Money – How Much Upfront Cash Do You Need?
The amount of upfront cash you will need to purchase your private property depends on a range of factors. The initial down payment required amounts to 25% of the total purchase price.
For instance, if you have set your sights on a condominium with a purchase price of $1.5 million SGD, you will be expected to fork out $375,000 SGD in either cash or CPF.
Second-time property buyers, however, should be prepared to pay 55% of the purchase price in cash or CPF. Using the same example as above, the buyer should be ready to part with $825,000 at the down payment stage.
When Should You Consult a Property Agent?
Property agents make the house-hunting process a much smoother one. As property agents are experts when it comes to real estate, they can guide you towards making a decision that is most aligned with your priorities and interests.
At any point during the process where you feel confused or need a second opinion, consulting a property agent would be a wise choice.
Buying a condominium is no small investment, which is why it is crucial to do your due diligence before investing in one. Map out your priorities to discern which option — new launch, resale or ECs —are most suitable for you.
Purchasing property can be a stressful endeavour, but an experienced agency could help make the process much more efficient and reduce your workload and hassle.
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