Top 5 Mistakes Buyers Make When Purchasing New Launch Condos
And How to Avoid Them
NEW LAUNCH
1/13/20254 min read
Top 5 Mistakes Buyers Make When Purchasing New Launch Condos (And How to Avoid Them)
Buying a new launch condo? It’s exciting, shiny, and full of possibilities—but it’s also easy to make mistakes that can haunt you for years. The glossy brochures and glamorous showflats can pull you in, but if you don’t think critically, you might end up regretting your purchase. Here are the top 5 mistakes buyers make and how you can dodge them like a pro.
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1. Falling for the “Newness” Premium
Let’s be real—everyone loves brand-new things. The fresh coat of paint, untouched appliances, and fancy smart home features are hard to resist. But here’s the catch: buyers often overpay for the idea of newness without thinking about whether it’s worth the price.
The Problem:
New launch condos are often priced 30-40% higher than nearby resale units. That’s a huge premium! While you’re paying for something fresh, you might find that capital appreciation is slower, making it hard to profit if you sell later.
How to Avoid It:
- Do Your Homework: Compare the PSF price of the new launch with resale properties in the same area.
- Ask Questions: Is the higher price really justified by features like smart home tech or a nicer pool?
Example: A resale condo in Tampines at $1,600 PSF vs. a new launch at $2,300 PSF. If the resale condo has similar amenities and a convenient location, why pay the extra $700 PSF just because it’s brand new?
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2. Ignoring Location Red Flags
A luxurious condo with state-of-the-art facilities might look like a dream, but if it’s in a poor location, that dream can turn into a nightmare. Long commutes, lack of nearby amenities, and weak rental demand can kill the value of even the fanciest development.
The Problem:
Buyers get distracted by the showflat and don’t evaluate the area properly. A bad location can mean lower rental demand, lower resale value, and more daily frustration.
How to Avoid It:
- Look for condos near MRT stations (within 500m is ideal).
- Check if the area has schools, malls, or upcoming developments to ensure long-term value.
Example: A condo near the Jurong Lake District has much stronger growth potential compared to a condo in a remote area with limited public transport.
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3. Misunderstanding Progressive Payments
“Lower repayments while the condo is being built? Sign me up!” If that’s your thinking, you’re not alone. The Progressive Payment Scheme can make new launches seem more affordable at first, but many buyers don’t realize how drastically repayments will increase once the condo is completed.
The Problem:
The shock of full loan repayments after TOP (Temporary Occupation Permit) can hit hard, especially when combined with renovation costs, property taxes, and maintenance fees.
How to Avoid It:
- Plan Ahead: Use a mortgage calculator to project your monthly repayments after TOP.
- Leave a Buffer: Ensure you have enough savings to handle the jump in repayments comfortably.
Pro Tip: If your monthly loan repayment is expected to go from $1,500 (during construction) to $4,500 after TOP, make sure you’re ready for that leap!
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4. Getting Swept Up in Launch Hype
“We’re almost sold out! Early-bird discounts! Don’t miss this opportunity!” Sound familiar? Developers and agents often create a sense of urgency to push buyers into quick decisions. The problem? Rushing can lead to bad choices.
The Problem:
When you rush, you don’t do your research. You might end up with a unit that doesn’t suit your needs or overpay for something that isn’t worth it.
How to Avoid It:
- Take a step back. Compare other new launches and even resale options before committing.
- Visit the site (or at least Google it) to get a feel for the surroundings beyond the glossy marketing materials.
Example: A condo with a flashy sky garden might look impressive, but if it’s located far from the MRT or everyday conveniences, is it really worth it?
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5. Choosing the Wrong Unit
Not all units in a condo are created equal. Some are fantastic investments, while others will leave you stuck with poor-facing views, awkward layouts, or limited appeal to future buyers or tenants.
The Problem:
Buyers often pick units based on availability or aesthetics, ignoring critical factors like facing, floor level, and functionality.
How to Avoid It:
- Study the Floor Plan: Look for efficient layouts that maximize usable space.
- Check Facing: Units facing greenery, the pool, or higher floors are generally more desirable. Avoid west-facing units if you want to avoid the scorching afternoon sun.
- Think Resale Value: Choose a unit that will appeal to future buyers or tenants, not just yourself.
Example: A higher-floor, pool-facing unit might cost more upfront but will retain better value than a lower-floor, carpark-facing unit.
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Bonus Mistake: Forgetting About Maintenance Costs
Fancy facilities like infinity pools, co-working spaces, and rooftop gardens sound great, but they come with a price. Higher maintenance fees can add up quickly, eating into your budget.
Pro Tip: Always ask about the monthly maintenance fees before committing to a condo.
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Summary
New launch condos are exciting, but they’re not without their pitfalls. By avoiding these common mistakes, you can make smarter decisions and ensure your investment pays off in the long run.
Remember, buying a condo isn’t just about picking something that looks nice. It’s about balancing your budget, location, and long-term goals. Take your time, ask the right questions, and don’t let the hype cloud your judgment. With the right approach, your dream home (or investment) is well within reach.
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