Does progressive payment for new projects fuel high new condo prices?
Buyers may be acting aggressively when considering purchases of uncompleted homes with a progressive payment scheme available, compared to resale units
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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.
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