New uncompleted private homes may be better buys than resale units amid high interest rates

HIGHER home loan rates are driving down housing prices in some global cities. Yet, private home prices in Singapore have thus far been resilient.

Time will tell if prices here will teeter because of high interest rates and property cooling measures. Nonetheless, higher home loan rates make the funding of home buys costlier, for people who borrow to buy.

For such buyers, there may be clear advantages to buying a new home that is sold off-plan over a resale unit, even though the price per square foot (psf) of a resale unit is generally much lower.