New Launch Condos in Singapore: What to Know Before You Book a Unit

New launch condominiums — also known as "off-plan" or "pre-launch" projects — are among the most popular choices for property buyers in Singapore. Whether you're a first-time homeowner or a seasoned investor, buying a new launch condo offers several benefits, including modern amenities, capital appreciation potential, and flexible payment timelines. However, it also involves specific risks and considerations that you should evaluate before signing the Option to Purchase (OTP).

This guide explains what you need to know before booking a unit in a new launch condo in Singapore, covering everything from how these projects work to what factors to assess before committing. Read more about Thomson View Condo Showflat

What Is a New Launch Condo?

A new launch condo is a residential development that is being sold while still under construction or even before construction begins. Sales typically start after the project receives approval from the Urban Redevelopment Authority (URA), and buyers can view the showflat and select units from available floor plans.

These condos are marketed in phases:

• Pre-launch/Preview: Developers release selected units at attractive prices to create buzz.

• Official Launch: More units are released at revised prices, often higher than pre-launch rates.

• Progressive Sales: Remaining units are sold at the developer’s discretion, often at a premium.

Early buyers often enjoy lower prices and the widest selection of units. However, you are committing to a purchase based on floor plans and brochures rather than a completed building.

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Benefits of Buying a New Launch Condo

1. Lower Entry Price
   New launch condos are generally priced lower than completed units in the same area. Developers offer attractive early-bird discounts to drive initial demand.

2. Capital Appreciation Potential
   Many buyers see capital gains even before the project is completed. Once the property obtains its Temporary Occupation Permit (TOP), it often sees a price increase, especially in high-demand areas.

3. Modern Design and Facilities
   New condos typically feature smart layouts, energy-efficient appliances, and up-to-date communal facilities like infinity pools, co-working spaces, and gyms.

4. Flexible Payment Structure
   The progressive payment scheme (PPS) allows buyers to pay in stages over the construction period, reducing the financial strain compared to buying a resale condo that requires upfront payment.

5. Lower Maintenance Costs
   Since everything is brand new, maintenance costs are minimal for the first few years, and defects are covered under the developer's warranty.

Risks and Considerations

1. Waiting Period
   You typically wait 2 to 4 years for completion. If you're buying for own stay, this means you’ll need to make alternative living arrangements during this time.

2. Limited Physical Evaluation
   You're buying based on a showflat and floor plan. Factors like actual unit facing, noise levels, wind direction, and sunlight exposure can’t be fully experienced until the property is built.

3. Potential Construction Delays
   While most developers meet their timelines, unforeseen events (e.g., material shortages or legal disputes) can cause delays.

4. Higher ABSD for Second Property Owners
   If you’re upgrading or investing in a second property, you’ll need to pay the Additional Buyer’s Stamp Duty (ABSD) upfront, even if your current property hasn’t been sold yet.

Key Factors to Evaluate Before Booking a Unit

1. Developer Track Record

Choose projects by reputable developers with a proven history of delivering quality work on time. Established names like CapitaLand, CDL, and UOL are considered reliable and trustworthy.

2. Location and Future Developments

Evaluate the surrounding infrastructure:

• Proximity to MRT stations and expressways

• Upcoming government or URA Master Plan developments

• Nearby schools, malls, and employment hubs

Future transformation plans can increase the value of your unit by the time it is ready for occupancy.

3. Price Per Square Foot (PSF)

Compare the launch price with resale condos in the same area. A PSF significantly above the surrounding average may be harder to justify unless the development offers unique advantages.

4. Floor Plan and Unit Layout

Focus on usable space, natural lighting, privacy, and noise buffers. Not all floor plans are created equal — some sacrifice functionality for aesthetics. Study where the air-con ledges, household shelters, and balconies are placed.

5. Facing and Unit Position

Units facing the pool or greenery generally enjoy a premium. Avoid those facing highways, substations, or bin centers. Corner units often offer more privacy.

6. Maintenance Fees

Monthly maintenance costs for condos can range from SGD 250 to SGD 500, depending on the number of units and facilities provided. Ensure this fee aligns with your budget and rental expectations.

Understanding the Progressive Payment Scheme

The PPS lets you pay according to the project’s construction milestones:

• 5%: Option fee

• 15%: Upon signing the Sales & Purchase Agreement

• 10%: Completion of foundation

• 10%: Completion of reinforced concrete framework

• 5%: Completion of walls

• 5%: Completion of roofing

• 25%: Completion of doors, windows, car park, roads, drainage

• 15%: Temporary Occupation Permit (TOP)

• 10%: Certificate of Statutory Completion (CSC)

This scheme is ideal for buyers who prefer to spread their payments over time or are waiting for other funds to become available.

Should You Buy a New Launch or a Resale Unit?

New Launch Pros:

• Attractive pricing

• Brand-new amenities

• Developer warranties

• Future appreciation potential

Resale Condo Pros:

• Immediate occupancy

• Known rental history

• No risk of construction delays

If you're investing and can wait a few years, a new launch could offer better long-term returns. But if you're buying for immediate use or want a proven property, a resale condo might be a safer choice.

Conclusion

Buying a new launch condo in Singapore is a major investment decision that offers a mix of opportunities and responsibilities. While it can provide strong capital growth, attractive facilities, and a brand-new living space, success depends on choosing the right project, location, and unit.

Before booking a unit, do your homework: compare projects, study the developer’s reputation, analyze market trends, and assess your financial readiness. Consulting with an experienced real estate agent and property lawyer will also help ensure that your purchase aligns with your long-term goals.

When approached strategically, a new launch condo in Singapore can become one of the most rewarding investments in your property portfolio.