Why are New Launches Still Popular in 2025 Despite the Rising Prices?
Here Are 5 Possible Reasons Why!
2/26/20254 min read
1. Strong Demand for New Launches in 2025
The property market in 2025 has already seen strong sales figures, with new launches continuing to sell out quickly.
🔹 The Orie (Toa Payoh) – Sold 86% of its units on launch weekend, with prices averaging $2,4XX PSF.
🔹 Parktown Residences (Tampines North) – Achieved 87% take-up rate, with units priced around $2,3XX PSF.
🔹 Elta (Clementi Avenue 1) – Sold 66% of its units on the first weekend, averaging $2,2XX PSF.
These numbers reflect a clear appetite for new projects, despite the higher price points.
💡 What This Means:
Buyers still see long-term value in new launches, especially in well-connected locations. Strong initial take-up rates also fuel confidence among future buyers.
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2. First-Mover Advantage & Capital Appreciation Potential
One of the biggest reasons buyers continue to choose new launches is the potential for price appreciation.
🔹 Developers typically price units lower during the initial launch phase, gradually increasing prices as sales progress.
🔹 Buyers who enter early lock in lower prices, benefiting from immediate appreciation once the development is completed.
📌 Example:
- A buyer who purchased a unit at The Orie for $2,400 PSF at launch could see resale prices in the area trending toward $2,700 PSF upon completion.
- This $300 PSF increase translates to a 12.5% appreciation, even before moving in.
💡 What This Means:
New launches offer higher appreciation potential than resale condos, especially for buyers who enter at launch pricing.
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3. Progressive Payment Scheme – A Huge Advantage for Affordability
Unlike resale condos, which require full mortgage repayments immediately, new launches allow buyers to stretch out their payments using the Progressive Payment Scheme.
🏗 How It Works:
- Payments are staggered based on the construction timeline.
- Buyers only pay interest on the disbursed loan amount until the condo is completed.
- Full mortgage payments start only after the Temporary Occupation Permit (TOP), typically 3-5 years later.
📌 Example: Buying a $1.5M Condo (75% Loan, 4% Interest Rate)
🔹 New Launch (Progressive Payment Scheme)
- Year 1: ~$1,000/month
- Year 3: ~$2,500/month (as more loan is disbursed).
- **Year 5 (TOP):** Full mortgage (~$5,900/month) begins.
🔹 Resale Condo (Full Loan Starts Immediately)
- From **Day 1:** Full mortgage (~$5,900/month) kicks in immediately.
💡 What This Means:
New launches give buyers more flexibility to manage finances while waiting for their property to be completed.
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4. Modern Facilities & Integrated Developments Make New Launches More Attractive
Many of Singapore’s new launches are built with better layouts, modern designs, and integrated amenities that resale condos lack.
🔹 Better Facilities – New launches come with state-of-the-art smart home systems, fitness spaces, and co-working areas.
🔹 Integrated Retail & MRT Access – Projects like Parktown Residences and Lentor Mansion include shopping malls and direct MRT access, making them highly convenient.
🔹 Space Efficiency – Developers now optimize unit layouts to maximize livable space and natural lighting, making smaller units more functional.
📌 Example:
- A new 3-bedroom unit in Elta (Clementi) at 900 sqft is designed with an open-concept kitchen and efficient layout.
- A resale 3-bedroom unit in an older Clementi project at 1,100 sqft has less usable space due to outdated layouts.
💡 What This Means:
Buyers are willing to pay a premium for modern designs, prime locations, and better facilities.
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5. Land Scarcity & Higher Land Costs Are Pushing Prices Up
A key reason new launch prices keep rising is land scarcity and increasing land bid costs under the Government Land Sales (GLS) program.
🔹 The government releases fewer plots for new developments, keeping supply tight.
🔹 Developers have to bid higher for land, forcing higher launch prices to maintain profitability.
📌 Recent Land Sale Prices (2025):
- Lentor Gardens GLS Site: Land bid price $1,108 PSF PPR, requiring launch prices above $2,400 PSF to be viable.
- Marina South GLS Site: Developers anticipate launch prices above $2,800 PSF, setting a new benchmark for city-fringe condos.
💡 What This Means:
New launch prices are expected to rise further due to land supply constraints. Buyers who enter the market earlier may benefit from locked-in lower prices.
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Final Thoughts: Should You Still Buy a New Launch in 2025?
📌 New launches remain popular despite rising prices because:
✅ Buyers still see strong appreciation potential based on past performance.
✅ Progressive Payment Schemes make new launches more affordable upfront.
✅ New layouts, modern facilities, and MRT access make them more attractive than older resale condos.
✅ Land scarcity and increasing GLS prices mean property prices will likely continue rising.
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Who Should Consider a New Launch?
✔ First-time buyers – Wanting modern layouts and potential appreciation.
✔ Upgraders – Looking for better facilities, connectivity, and investment value.
✔ Investors – Targeting capital appreciation and long-term rental demand.
🚀 Final Advice:
With fewer land plots and increasing land costs, new launch prices are expected to rise further. Buyers who enter early stand to benefit from price appreciation and flexible financing options.
📌 Looking to secure a new launch unit at the best price?
Contact us Today!
Why Are New Launches Still Popular in 2025 Despite Rising Property Prices in Singapore? Here Are 5 Possible Reasons Why!
Despite Singapore’s property prices reaching new highs, new condo launches continue to attract strong buyer interest in 2025. Even with tighter regulations, increased construction costs, and high Additional Buyer’s Stamp Duty (ABSD), demand for new launches remains robust.
But why are buyers still snapping up new condos despite the rising costs? Here are five key reasons driving the popularity of new launches in 2025.
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