Are New Launches Still Worth It in 2025?

Are New Launches Still Worth It in 2025? How to Choose and What to Avoid

New condo launches have long been a popular choice in Singapore’s property market. But with rising prices, stricter regulations, and changing rental trends, the question remains: are new launches still a smart investment in 2025? Let’s dive into the pros, cons, and how to navigate the landscape so you can make an informed decision.

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Why New Launches Are Still Attractive??

There’s a reason why people continue to gravitate toward new launches:

1. Modern Features: New condos offer the latest in design, technology, and facilities—from smart home systems to infinity pools.

2. Progressive Payment Scheme: Payments are staggered based on construction milestones, meaning lower upfront financial strain while the property is being built.

3. Early-Bird Perks: Developers often offer discounted prices or freebies (e.g., vouchers, furniture) during the initial launch phase.

4. Potential Appreciation: Historically, well-located new launches see price appreciation after their completion (TOP).

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Why New Launches Might Not Be for You in 2025

1. Sky-High Prices:

- Developers are paying record-breaking prices for land, pushing suburban (OCR) condos to $2,000+ PSF, a price previously reserved for city-fringe (RCR) properties.

- This means thinner margins for price appreciation, especially if you’re buying primarily as an investment.

2. Cooling Measures:

- The Additional Buyer’s Stamp Duty (ABSD) for Singaporeans buying a second property is 20%, significantly increasing upfront costs for investors.

3. Shifting Rental Landscape:

- After peaking in 2023 and 2024, rental prices have stabilized in 2025. While rental income can help offset mortgage repayments, it’s unlikely to fully cover rising financing costs.

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If You still Prefer New Launches,

Here is How to Choose the Right New Launch Condo in 2025

If you’re set on buying a new launch, here’s how to ensure you make a smart choice:

1. Location Is Everything (some might not say so, but I do)

- Close to MRT Stations: Condos within 500m of MRT stations retain value better and are easier to rent out.

- Growth Areas: Look for locations with upcoming developments like Jurong Lake District, Woodlands Regional Centre, or areas along the Cross Island Line.

- Schools and Amenities: Proximity to good schools (e.g., Nan Hua, St. Nicholas Girls’) or shopping hubs boosts appeal for families and tenants alike.

Example: A condo near Lentor MRT (Thomson-East Coast Line) offers future connectivity and investment potential.

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2. Compare Prices Wisely

New launches are often priced higher than nearby resale properties. Compare PSF prices to see if you’re paying too much for “newness.”

Example: If resale condos in Pasir Ris average $1,500 PSF and a new launch is priced at $2,200 PSF, ask yourself: does the price premium justify the benefits of a new condo?

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3. Choose the Right Unit

Not all units are equal. Here’s what to prioritize:

- Efficient Layout: Avoid units with long corridors or odd corners that waste space.

- Floor and Facing: Higher floors with unblocked views tend to fetch better prices and rents.

- Size for Target Audience: Smaller 1- and 2-bedroom units are easier to rent out, while larger units suit families.

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4. Know the Developer

Stick to reputable developers like CDL, CapitaLand, or UOL with a track record of delivering quality projects. Research past developments for insights into build quality and maintenance.

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IMPORTANT!!

What to Avoid in New Launch Condos

1. Overpaying for Hype

Launch events create urgency, but don’t feel pressured to buy immediately. Take the time to compare nearby resale options and ensure the pricing makes sense.

2. Poor Locations

A “cheap” condo in an inaccessible area with limited amenities may struggle to attract tenants or buyers, affecting both rental yields and resale value.

3. Ignoring Long-Term Costs

Fancy facilities like rooftop pools and co-working spaces may come with high maintenance fees, which can add to your monthly expenses.

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Who Should Buy New Launches in 2025?

- First-Time Buyers: With the Progressive Payment Scheme, new launches allow you to stagger payments while waiting for the condo to be built.

- Upgraders: If you’re selling your HDB flat and have built equity, upgrading to a condo in a prime location can enhance your living experience and investment portfolio.

- Investors: New launches in prime locations with strong rental demand (e.g., near MRT stations or regional hubs) still offer potential for long-term appreciation.

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Final Thoughts

New launches in 2025 can still be a great choice, but the stakes are higher. Rising prices and changing rental trends mean you need to be more discerning. Focus on key fundamentals: location, pricing, and the type of unit you choose. Don’t get swept up in marketing hype, and always have a clear financial plan in place.

With careful planning and the right choice, a new launch condo can still be a valuable asset—whether as your dream home or a long-term investment. Happy condo hunting!

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